It's based on zoning classification and lot size.

A good accountant will be able to classify your properties based on their merits, as opposed to a single classification for your business.In other words, if you have 10 properties, 5 of which you flip and 5 of which you are holding as investment, your CPA should be able to get half the properties taxed at long-term capital gains (investments) and half taxed at ordinary income (dealer).Without a good CPA, you run the risk of your entire business being classified as "dealer" and paying higher taxes on all properties.Also, your CPA will recommend how to structure your business entities to support the way he will be claiming the income to the IRS when he does your taxes.

. $ amount for repairs) does the property move from the classification of retail sale to wholesale property.

Be aware though that the initial filing cost does not necessarily reflect the yearly recurring filing and maintenance cost.It is not unusual to set up an LLC outside of where you reside and then operate as a foreign entity there or elsewhere; you would have to then do the math to see if there is a cost benefit to such an approach when you factor in any local filing requirements and yearly fees that may be necessary based on the exact nature and classification of your activities by the state.So you sort of need both the insurance & LLC.

The classification of safe is subjective to the desired out come and investor.

Part of any bank examination is the classification of loans and loan compliance.

A commercial property is one used in a business purpose.Commercial loans, for business purposes can be made on 1-4 single family homes, such is a loan classification by lenders.

That's exactly how I got started in real estate.Like everyone else already suggested, your best option is using the VA loan to get a multi-family, which means no downpayment necessary (up to $417,000 or higher depending on your location's classification), you get the lowest interest rates regardless of credit score, no PMI necessary, you might not have to pay any funding fees, etc.  

How exactly is a neighborhood classified as an A/B/C/D-class neighborhood?  What are the criteria?  Who decides?Same question for residential properties.  What criteria determine if the property is an A/B/C/D class pr...

Check state laws as to the classification of loans by the type of collateral used, just because you think it's for a commercial purpose, it could be residential requiring further compliance.