Very useful if you have a forest to cut down, but can be dangerous to those who don't know what they are doing.

Then sell … Over leveraging is dangerous path for REI

Not if I know how to use it, what I can do with it, and how it can be dangerous.

There is a distinction between a builder and a developer.

@Jonathan Rivera, I'm not too familiar with NJ but what I do know is that it has very distinct regions.

I see the IRS regs about rental activities being defined as passive, but I don't see anything about a lower rate.I just see that this "passive activity" distinction subjects us to "passive activity loss rules", which limit our ability to offset other types of income with net passive losses.But even that limitation is negated for us because we fall into the "active participation" exception, so we can offset our regular earned taxable income dollar-for-dollar with losses from our rental (if I understand the regs correctly).

This is why I like treating each part -- investment and primary residence -- as a distinct purchase even if there's only one closing and one contract. 

Can be VERY dangerous for seller - seller is legally responsible for a mortgage secured by a property they no longer own.  

. - choose another RE related syndication to join as LP   I have this goal in spite of my first re syndication in danger of loosing money.Apparently not impressive on my goals.  

Every area will have its own distinction....like NY/Boston/Chicago etc there may be A properties that are 100+ years old and there may also be brand new to market assets.