I used the local online classifieds to get an idea of the renters market.

It may not be earned income for everybody since that is active income and you'd have to get your passive income to become active, e.g. being able to classify as a Real Estate Professional in the eyes of the IRS.Look at it this way. 

This is called the election for Effectively Connected Income (ECI) treatment.US Classification of income into FDAP and ECI for Non Resident AlienThe IRS classifies income into two general categories:The Fixed,-Determinable,-Annual,-Periodical-(FDAP)-Income.

I classify myself as a real estate professional and understand what that means.

That said, we classify pre-pay penalties as closing costs.

When we try to qualify for a 2nd loan the bank is considering it a primary residence (which it is for my business partner) and are not considering the rent we have been collecting as rental income due to it being classified as a primary residence.

I'd probably classify it as repairs and maintenance. 

Ensuring you can classify expenses properly is important.

The distinguishing circumstance is that you don't have title during the redemption period.I'd probably be inclined to classify properties in their redemption period as current assets on the balance sheet, and reclass to inventory after the deed is quit claimed to you. 

It's always their fault and they should work for free.The COVID-19 pandemic can be classified as what's known as a "Black Swan" event.