I did not read anything other than your title and my answer was YES.

According to what I have read straight from the IRS website and other places, we need to either meet 500 hours, or at least 100 hours and also work more than anyone else on the property.

I was just reading Mark's book "The Tax & Legal Playbook" this morning and it specifically had a "critical warning" (page 31&32 in Chapter 3).

My suggestion to any one that are first time real estate investor in fix & flip, or planning to hold property for rentals, is to learn or read, understand about real estate financing first, build your assets and network or partner withsome has completed some projects in fix & flip and has some rental properties with positive cash flow within your immediate area before dving in to any project by youyrself.

Make sure you talk to a Banker or Loan officer that is well versed in both SE (Self Employed) income and also Non/QM programs.One tip I will give you as a Banker is open up a "Business Checking account" and for the next 12 months pay "Everything" out of that account. 

This question crossed my mind recently after reading a post and some comments discussing whether an investor is experienced enough to raise capital from outside sources.

I have read all of the "trends" and statistics but now I am Looking for feedback on personal experience in the Akron market.I appreciate it! 

I am currently trying to learn as much as possible by reading books and listening to podcasts.

I just re-read and realized you're talking about getting loans for lien position 2, is that correct?

Quote from @Anthony Vaganos: I will definitely make sure to read the loan agreement but that was told to me verbally by a conventional lender during my diligence work.