The tax preparer may be confusing the two. 

I moved into the property while getting it prepared for the next season so I could quailify for better loan options.

Renovated with cosmetic updates for immediate rental income, it offers strong cash flow while preparing for more extensive repairs and the addition of an ADU.

I added value to the deal by completing quick cosmetic repairs, allowing the property to be rented immediately and generate cash flow while preparing for ADU construction.

I've been fortunate that I haven't lost money lending through my retirement accounts....yet......but I have lost money lending outside of it.The more lending you do, the more likely it is that someone will not pay you back so just be prepared for that.

I’m trying to learn as much as possible in a short amount of time to at least prepare me for this adventure and hopefully make it successful.

The more prepared you are, the better responses you will get.

Even if your consultation  says you should be fine, are your prepared to pay an attorney to fight this if necessary?

However, once i hit my goal and preparing to break ground on new construction, having a plan seems to help me better than shooting from the hip.

Food for thought!