Since heis a “Cash” taxpayer and not accrual.

The current real estate environment that we've been in for the past several years hasn't presented any opportunities for deals like this.Because of the above bullet point, my real estate folio is kicking off a ton of profit each year which is fully taxable at ordinary income rates for me with federal plus state that means 42%From day one we've always self-managed everything, and built a great team of sub’s and handymen in every area, so that I’ve never had to do any labor.

Each individual owner can have their own Deferred Sales Trust™, the assets of which can be managed to each taxpayer’s own individual risk tolerance and preferences.9) Net rental income.

Think about all the extra time trouble and cost it takes to turn an ordinary house into a vacation rental...just my two cents though...

Yes @Akash Sky that is considered ordinary income

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

I was unaware of the tax-paying requirement you mentioned for adverse possession.

What you're posting about does not sound out of the ordinary at all. 

Getting P&I payments (and paying ordinary income on it), will NEVER yield a better return than interest only. 

Active = Income earned from Material Participation.Whether that's SMB, W-2, contract income, or prof real estate.This is income where ordinary tax is paid and losses offset other income.