It could mean running a real estate company of some type, owning an investment (which is distinctly different from managing one), or just being more businesslike in every day investment and real estate decisions.Why Should Investors Approach REI as a Business?

Therefore, OP generally doesn't avoid and has exposure to SE taxes.Sec 1402 is distinct and separate from Sec 469. 

I have a stringent pet policy and i enforce it (no pet waste on the property-  no letting dogs pee on the property etc) 

@Steven Hamilton II I never heard of the distinction between renting before or after living in the property and having to prorate.

I have personally seen 1400 distinct properties in the last 3-4 years and I recommend you see at least 20 buildings before you make an offer so you can see the nuances of the market. 

It’s an artificial distinction, and, frankly incorrect.You can flip a house that makes you a big profit.

Living with your tenants" gives you a distinct advantage in that you can legally be very picky in whom you rent to (look up Mrs Murphy provision).

Even this distinction makes for different recommendations.

I understand that there is a distinct difference between ROI and COC.  

There are multiple separate items here and each is distinct. 1) Property tax rates are based on local laws and definitions.