Income from flipping is generally taxed as ordinary income.

Second, the seller must not have constructed the residence or acted as a contractor in the construction as part of the ordinary course of their business.

Not the experience investors and company who knows how to play with the risk and afford to lose, but us, ordinary people who invest based on assumption and false believes...This is one of my favorite quotes: “Everything we hear is an opinion, not a fact.

That way, instead of the underwriting process taking several weeks (as they'd have to underwrite both you and the deal), the process can be streamlined (since they've already underwritten you).Just make sure they aren't asking for any payment upfront -- that's a BIG RED FLAG.As for why you're being asked for so much, I presume it's all the standard information that any professional lender would ask for -- credit report, P&L, balance sheet, tax returns, proof of income, proof of assets, etc.Are they asking for anything that is out of the ordinary?

The fact is that low income tenants live a life of drama that ordinary middle and upper class people don't experience.

Your income from this is taxed as ordinary income plus self employment tax.

Because, for some people, rental real estate can generate a positive tax consequence on the ordinary income.

That's the same as your ordinary income tax rate.

If a property is pending sale, but is also the subject of on going foreclosure proceedings, it could be a short sale, or it could just be an ordinary sale, depending on the value and mortgage balance (with values skyrocketing, there have been very few short sales in recent years). 

There are many qualifications that must be met to be able to able to deduct losses against ordinary income.