Single family homes regardless of market  are very inefficient to operate to begin with but the lower price point homes are disproportionately impacted by ordinary upkeep maintenance, repairs and cap ex because they struggle to absorb these costs (some of which are fixed or close to fixed regardless of whether this is  $100,000 house or $300,000 house). 

In addition depending on the lender the person losing the home could get a 1099c which would be treated as ordinary income.

I typically only buy notes in my account though since notes are taxed as ordinary incomeI can see a point about depreciation but when you exit a property you pay depreciation recapture tax so I think it’s over exaggerated about losing the benefits of tax deductions as you are not paying taxes on the income anyways.

I added extended driveway, RV parking, back yard landscaping w/ covered patio, shiplap on two interior walls, and painted accent walls in every room.

I'll add another piece: with interest rates on the downswing, bank on refinancing and higher cashflow in the near future.This may well not be what a "more successful syndicator" would do, but it wasn't a more successful syndicator who asked the question, just an ordinary mom and pop investor who's looking to expand on what she's got.

Hard to see anything out of the ordinary at all in this. 

Relocated the laundry room, Finished the basement, made the kitchen and living room an open concept, extended the deck and added a back patio door, and more.

I don’t know why finding the right broker is something out of the ordinary, when finding the right brokerage to allow you to utilize all your skills and allow your full potential is what i want and what everyone should want!

You will pay ordinary income on the interest.

Then if/when I pay myself in the future I would also be paying ordinary income tax on what I receive.