During that time when the crack dealers are "posting up for business"  there is anywhere from 20-30 people moving on foot into the back apartment.  

The one shot dealers are dangerous. 

The good news for me is that the income from my day job almost gets me over the Social Security rate.But anyway, that's just context for my real question.From what I've been reading, the IRS considers this activity non-investment income because I am acting as a "dealer" and am simply selling my "inventory" as I would with any other good.

One of the best kept secrets on the planet.. kind of like how much is that car dealer making on me.. at least it was in years past..

Normally this would be the right choice as I am one for eliminating the middle-man except in a few cases and here's why...I have my auto dealer's licensebecause after working in the car business I know the games they play with consumers!

With a dealer you go to the lot, look at their inventory, and close the deal right there.  

Pledge rents, factor receivables, discounts from notes, equipment leases, floor planning for your used car dealer......Had a charitable remainder trust set up as the note holder with several beneficiaries under one note reducing the tax burden of a seller, the note included cash back to the buyer for development costs, non-profit buyer, cash donated, seller saved a ton on taxes.Pledge equity of other properties for 100% seller financing, pledged equity to buy discounted notes, that reverts back to the above arrangement as well.

So, with that, go ahead, go do that on your own dime, seek and take only that advice that justifies your thinking, you're on your way to being a slickster, wheeler-dealer that will operate without concerns of the law.

This is great to ensure drug dealers aren't living in the house!

Lets say you are in the 25% marginal tax rate tax bracket, you'll owe the IRS the full tax of $10k in the year of sale, the following April 15.If you flip for a living and are already a broker dealer, then you'll owe an additional amount for both sides of FICA as well, I believe is 15% more.But you'll only get from the buyer 5% down (principal) plus the small amount of principal that comes in from the buyer's mortgage payments to you.Side note:  when you sell on a note (seller financing) always use a mortgage servicer.