I'm sure neither party would like to have me in this deal but the contract-holder doesn't have a buyer and I don't want to end up just introducing them and getting cut out or having either side complain about my fee as closing approaches, which wont be out of the ordinary but will be something to complain about as there are extra people in the sale. 

This would be taxed as ordinary income. 

Nothing special, just an ordinary guy.  

Keep in mind this is everything under roof, not just livable, so you must include garage, carports, patios, eaves, etc. 

If you are organized, pay off your credit card in full every month and just pay your ordinary expenses with it you can easily earn and extra $2-3k/year per person (you and significant other) for doing nothing other than rotating out cards. 

I'm reading conflicting on NOLO (https://www.nolo.com/legal-encyclopedia/taxes-when-landlords-sell-rental-real-estate.html) and IRS (so I assume IRS is the correct one, https://www.irs.gov/publications/p544#en_US_2017_p...) that the depreciation recapture is ordinary income or depreciation recapture is only 25%. 

For example, a patio home style neighborhood?

You will have to hit a grand slam in order to make up for the early withdrawal penalty, ordinary income tax hit and loss of expected investment income. 

., what would normally be used to offset against future passive income which is taxed at 20% can now be used to offset against ordinary income, which is potentially taxed at a much higher rate. 

The problem as a developer is if I get a small building for rent and a larger parking lot then it is eating up developable land versus the rent I get because they are paying on the size of the interior building space including exterior patio but not parking spaces.I have seen 4,000 sq ft building on .5 acre and then 1 plus acres.So it is a dance between the return you get and how long it takes to get there.