If you have a partnership structure or some other facts and circumstances around the loan that indicate you are extending it in the capacity of a trade or business, it will be considered ordinary income.Keep in mind that the tax rates will not differ between ordinary and passive income unless you sell the loan for a gain/loss.

The key factor is physical presence, which, as you mentioned, requires being in the U.S. for at least 183 days during the calendar year.However, it’s essential to note that the substantial presence rule can apply to foreign property owners who spend extended time in the U.S.

You'll also want to look into the opportunity zone, as of now they expire December 31st 2026 meaning any deferral of tax comes due at that time unless Congress extends it.

If you plan to make frequent and extended use of the money, the a cashout refi probably makes the most sense.

I posted the listing on December 12, and my first tenant moved in on December 26th.As I’m filing my (extended) 2023 taxes, I’d appreciate any advice on what expenses I can deduct and what I should capitalize, especially since the property was mostly vacant.

They aren't throwing it within my fenced area but my property line extends to outside the fence as well.

Can you extend the loan term if needed?

In a stagnant market, you might need to hold for an extended time for the value to increase enough, and the pref might mature before you can get there.  

Lenders generally rely on formulas when arriving at the loan amount they are willing to extend to you, the borrower.

One of Pace's core teachings lies in the spirit of giving more than you take—a principle embraced by countless students, who readily extend a helping hand to those still seeking their first breakthrough.