I have a question: If I have a primary residence (highly leveraged) & I decide to move out and keep it as a rental property, then that property's equity would now be classified a "real asset". 

Plus, there are some new components of the stimulus package that strongly encourage those classified as real estate professionals for tax purposes to pour more money into real estate.The primary ways to generate more cash flow are room rentals and airbnb. 

If you're classified as a real estate pro, your rental income could be considered "active," which means self-employment taxes. 

Each informed me of the need for a permit for any repairs, upgrades or modifications which would be then bring the record current and re-classify the property as a 3 BR.  

I'm not saying wholesalers don't need a license, but direct mail campaigns, signage, print & classified advertising, etc are all public facing.  

What stopped me from purchasing the facility was the same issue that Tim is running into...They couldn't be classified as real estate since they weren't attached to the ground.

No Jay, you're not a private lender, you're a lender using your money, you would be classified as a hard money lender.Private lending is set out in banking and SEC regulations.

These names are easy to find and they will be found.For all who think these gray areas are ok to delve into because they aren't expressly prohibited should check out this article from todays' Chicago Tribune entitled Mortgage Cops Taking a Tough Stance.http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-0913-strategic-default-20120913,0,4134066.storySome key quotes."

Some cities are ok with the use, will classify it as legal nonconforming, but an important question to ask the city directly is, "What happens if my property gets destroyed by more than 50%? 

Get to KNOW the local market, go to open houses, scour classifieds, etc.