And you'll pay ordinary income tax plus probably self employment tax.it might be worth your while to move your timeline out a year or so and hold with then intent of using for productive use. 

@Irving FrancoThat’s a cpa question but because the loss I believe is ordinary income passive losses cannot be used to offset it

Sch 8825 for passive, then ordinary/self employment income seperate. 

After this you remove the mortgage amount and then capital expenditure because these aren't ordinary expenses.

At 59 1/2 I have to start pulling that money out as ordinary income for which I pay a lot of taxes. 

It does not seem out of the ordinary.

Your private lending income is an ordinary income and will be taxed at your W-2 rate.

All profit  if any after fees and closing costs will be considered ordinary income.Selling occupied multis is such a pain when its all said and done. 

Investing in a REIT offers ordinary income that is treated at your W-2 rate, and hence not the best strategy (or at least not the only one to rely on) for someone in a higher tax bracket.

Is all cash flow taxed at ordinary income rates?