I was a day trader and educator for a hedge fund where my focus was in FOREX and Futures.

For instance, you might like the idea of buy and hold but if your personality type is akin to a trader's mentality, it will be hard following on your plans.

In a nutshell, if you are making a trade or business out of buying and selling real estate at a profit, and doing so to such an extent that it’s clear that you are a trader rather than an investor, then you will fall under the dealer rules.The IRS has similar provisions that apply to auto dealers and professional, active stock traders, as well, and for similar reasons: Capital gains tax rates were not designed to apply to retailers – even if you are a retail seller of something very large.

For ex.

That's part of the reason we're seeing all of this new development, and why businesses like Trader Joe's are now opening in the area.The 1 Million MSA population's effect on Grand Rapids shouldn't be underestimated.  

A pop up would appear “ this property is restricted to 4 weeks stay “ .If you are trading stocks the trading Platform restricts traders from doing illegals trades.

For ex: If you bought a home at a very low interest rate and rates increased, then bank can call the note so you have to either pay or refinance at a higher rate.Can be expensive to maintain if you only have 1 or 2 propertiesTax benefits:I think tax wise both approaches can be handled as pass-through taxation but there are advantages to an LLC if you have a big portfolio or actively flipping houses etc.

Being an experienced trader, my first instinct is to control risks and limit downside.

I'll give you a bit of context to work with: I am currently taking the mandatory 7 week course to become certified to trade real estate as a realtor in my province, Alberta, Canada.

In 2008 (also early 2009), some astute traders bet on the housing crash and made huge returns: 600%, 1000% etc. as I heard.