@Jake Berlin- thanks ...I would recommend getting a loan approval  started  using a hypotehtical purchase price and loan amt ...This will allow you to get  organized/ educated and  prepared  and many of your questions will be  answered - good luck

I am an Army Public Health Nurse and fitness instructor/trainer preparing to retire after 30 years of service. 

Just like a debate or presentation I may spend hours preparing to send 1-2 with the client.   

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If you are a Real Estate Professional this cap does not apply and hence why it is such a powerful status for tax planning.As @John Underwood said, Schedule C income categorized by "substantial services" such as turn down services, meals prepared, or special activities provided.

However, be prepared for management challenges with 12 units, consider the market's volatility, and acknowledge potential liquidity limitations.

Even so, I am more prepared from an education perspective and ready to get my first investment property.

Additionally, borrowers should be prepared to work closely with their lenders and provide the necessary information and documents in order to get approved.

You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a tax strategist willing to work with you throughout the year, not just when preparing your tax return.

If the value really is around $130K, I would expect this property to sell at auction at $60-80K, so be prepared.