I keep in touch with some folks still involved with those properties and the syndicators are are operating them very poorly (that makes me angry because I took care of these buildings well, treated the tenants well etc. and some of the units are section 8, the rest are low income). 

My opinion is they are not treated RE in a business manner, because most business growth is built on some sort of leverage.

The best thing you can do to protect yourself is to follow the law and treat people honestly and fairly. 

But how you treat your employees can be a huge indication of your character.

Right now treating it as interest but would like to make it active income to do a solo 401k .

As a new real estate investor you have to establish some business goals, if you want to treat it as a business and not a hobby.  

Treat the relationship with importance.

@Anthony Bertolino If you actually read the article you linked to past the headline you will see that there was tulip speculation and the market did crash, and there were people who treated it as an investment rather than a luxury good. 

Watch how you spend. you'll treat holiday season after October and your summer activity post April very differently. 

If you reported a lot of expenses and showed a loss, then the loss will be treated as a liability in DTI calculation.