I'm on the board of property assessors -- the people who actually help change this classification and even I can't get it changed.

The expenses need to meet the definition of ordinary and reasonable though.There are different classifications real estate investors in the tax code as well and it can play a major part in what is deductible and when it is deductible.Education expenses for the purpose of learning a new profession would be difficult to qualify as legitimate business expenses.Hobby loss rules can apply to real estate businesses as well as any other business and need to be considered.The real estate professional status can be quite beneficial if an investor qualifies.

Additionally, I'd imagine there being some type of zoning/classification to change a motel to permanent housing.

Do you guys feel like that is an accurate classification for that area?

He was desperate to sell because his Rural Dev. loan had been paid off and his section 8 classification ended, however tenants weren't paying the full rent like they were supposed to.

Are you separating your assets (homes) by class? If

I would appreciate any suggestions on what neighborhoods I should explore.Payal,How old can you go and still fall into the newer classification?

This classification typically means that the property is listed on the National Register of Historic Places or is located in a registered historic district.Substantial Rehabilitation: The building must undergo "substantial rehabilitation" to qualify for the credit.

Classifications of said earnings play a huge role. 

Hoarders being a protected class, if true, is absurd.