. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures?

So many investors we work with come to us trying to use already passively classified losses against their active income, and we have to be the bearer of bad news and tell them once its a passive loss, it cannot become active.

Suit was threatened as zoning may not allow (my interpretation is that zoning does not allow without variance and hospice is not covered in the type of housing that classifies as residential) and everything stopped. 

Howshould I classify the duplex?

Welcome to BP@art wellerAll advertising must be posted within our Classifieds forum. 

If you want to continue with the STR and classifying the property as active, you have to spend 100 hours and more time than anyone else.

A lender may classify detached multi units as residential in portfolio loans in some states, not all.

@Jeff BazinetPlease post your deal/investment opportunity in the Classifieds page https://www.biggerpockets.com/forums/517

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

All offers to buy/sell should be posted in the Real Estate Classifieds.