Basically you get rid of your operating deductions and file on a Schedule C vs Schedule E.Here is an excerpt from an IRS document - https://www.irs.gov/publicatio...Schedule C (Form 1040), Profit or Loss From BusinessGenerally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer.Providing substantial services.If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C.

Heck if the price is really right, someone may trade in their car

Construction is a risky endeavor especially since you probably don't have go to folks for various trades. 

Mom and pop office should trade around 9% cap in that areaA lot of mom and pop office space is 1 year or mtm. 

So that’s not to discourage you on doing one, it’s just that they come with consequences. in addition, I can’t imagine that if your current property is financed now, that you would be going down on your interest-rate, so overall, you were talking about really increasing your expenses to access this capital. 

Whether we like it or not, there are consequences to our decisions and policies.

First there is not a lot pf meat on the bone to cover unexpected costs, holding costs due to the dynamic market and the availability of trades. 

If you are good with your hands, or want to learn a trade, start making calls to people asking if they are looking for an apprentice or if you can shadow them.

I've been using a lease I got from my RE agent, with no landlord address on it, for years.  Everything worked fine and payments are on Zillow.
I now know that providing a physical contact address is a requirement.  W...

I have 18 yrs experience in construction with knowledge in a wide variety of trades.