That could be something simple such as adjusting the amount of late fees or something more involved.

It's like whoever created this has only experienced life from a textbook and has no basic understanding of real life and basic business principles. 

It is a way to understand the program offering, ask questions, etc.

As I understand, the city will allow a short plat so I can buy this parcel but then when I want to sell lots the utilities have to be in.

BUT I feel like I still have to have a ton of involvement especially with multiple rehabs etc, to dictate what expense is from what property and what the purchase was for etc. to be sure deductions and depreciation are correct.

I think if you understand the price per unit as well as the price per square foot in the zip code and nearby zip codes that will give you a good idea of the comparable market analysis approach and appraiser might use.

They are pretty involved in making sure the property is updated and functional which ends up reducing the amount of $ offered, or if the property needs maintenance repairs Flock might not offer on it at all.

I am looking to understand if there is a way to make MTR income/losses classified as active income (rather than passive) when you do not have REPS status?

If I'm understanding you correctly you only want to actually buy the house for $184K, but you want to use a gift of equity from your daughter as the down payment.

Due to personal faith based reason, I prefer to only invest in all cash deals that don't involve traditional financing (so typical passive RE options like syndications, RE funds with fixed returns, REITs etc are not a viable option for me).