There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

I assume that the main advantage is being able to buy the property without the 180 day time constraint? 

I think the main factors you should consider in Florida are the following: 1.

And what are your main concerns about financing?

We are actually thinking about moving into the smaller unit. we are thinking if we should rent the main unit for long term rental or STR like airbnb but im afraid with airbnb, the non occupied days we may miss out on cash if its not rented out. 

People seem to buy mainly for appreciation, but I'm not sold appreciation will continue to rise the way it has the past 5 - 6 years, so feel like CF is the safer investing avenue for me. 

Is it a typical inn/bed and breakfast setup with all the rooms inside of a main house? 

While the offer sounds tempting, I want to ensure I capitalize on these contracts fairly and effectively.Here are my main questions:Should I entertain the idea of terminating my current contracts, or is it better to stick to my original wholesale plan?

An architect told me that even though ADUs should not be bigger than 50% of the main house, I should be able to permit this one with SB09 if I pay a fee (about $8k according to my agent).

Be sure to factor in management complexity, market research, and your risk tolerance as you evaluate options.Without a W-2, HELOC approval can be tricky, but some lenders will work with retired individuals, mainly if you can document stable income (rental income, retirement funds, etc.).