So whatever you earn is ordinary income and hence taxed at your W-2 tax rate.

Are there any other issues out of the ordinary I should be worried about?

for NON owner occ commercial purpose loans.. for all owner occ loans it is required.real lenders do not solict you with e mails like this.. 99.9% of those doing that are fakes and frauds and will just scam U out of whatever money they can get.google Ingrid Robinson American Greed to learn how these perps work ..

This concept applied to OOS investing would be great, not only at the purchase but also during projects or checks on the units.do you use Renteria by chance  Sal is a good friend.. we were neighbors at Silverado.. talk about an American success story.. comes from Mexico as a Barber now lives in a mansion on top of Silverado.. his did not burn down..

American Family pulled out of that Market and Auto Owners did not pull out they just doubled the premium.

It was something about pass through tax benefit, that can offset passive income against ordinary income.

And of course, Nathan and his firm, American West Realty, is managing the property for me, from the get-go.

Weather and ordinary decay causes every landlord to spend money. 

the minute you have more than one investor, (ie: you fractionalize it) you will be considered offering securities.Under Reeves, The following is a list of notes that have judicially been determined to fall outside the definition of a “security”:(i) a note delivered in consumer financing;(ii) a note secured by a mortgage on a home;(iii) a short-term note secured by a lien on a small business or some of its assets;(iv) a note evidencing a character loan to a bank customer;(v) a short-term note secured by an assignment of accounts receivable;(vi) a note which simply formalizes an open-account debt incurred in the ordinary course of business (particularly if, as in the case of the customer of a broker, it is collateralized); and(vii) a note evidencing loans by commercial banks for current operations.

That flip is going to be ordinary income - not capital gains. 2.