If you run a lending as business, your interest will convert to ordinary income and could be passive based on your involvement.

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.

For me I invest my SDIRA money in debt investments which typically are ordinary income when using w2 income and use my hard earned cash to buy properties. 

Greene.Tenants should be responsible for ordinary pest control.

I'm not a real estate professional in the IRS sense, so if I take money out of my real estate investments as profit, I'm paying ordinary income.

Commercial appraisals are expensive, $5,000 isn't out of the ordinary.

Therefore expect a 15 page home inspection report   filled with corrective measures you must satisfy otherwise the buyer walks.All in between turning over the home, ordinary transactional costs ( broker fees, transfer tax, loan payoff fees etc.) seller assist, repair addendum repairs its very possible for your exit fees to approach 13-15% of the properties sale price. 

Instead of buying trips or hotels for ordinary point values, learn how to increase the value of your points and stretch your dollar farther.It's an inexpensive e-book.

I would highly recommend doing some deep diligence not just ordinary on any syndication you enter, or note fund you enter. 

@Evan Polaski It took me at least a year of sourcing sponsors, finding investment group resources, analyzing opportunities, and understanding proper diligence; so, following a sponsor for a long time happens in the ordinary course of getting familiar with an investment strategy (particularly one that lacks control).