So, if you have a full time job (2080 hours a years), the threshold becomes 2081 hours a year.My general advice is to find a good accountant (CPA or enrolled agent) who's knowledgable about real estate and evaluate your situation and advises you on how to organize your finances BEFORE you start investing in real estate. 

@Percy N. typically CPAs will not provide fraud evaluation services unless they specialize in forensic accounting.

Over the last few months I have been active in the local real estate market evaluating deals and trying to find my first purchase.

@Jose Gonzalez I am new to this world, I've been studying a lot, when hear about the really good deals that were made just 3 years ago, it makes me a litter sad, but, this is the moment I choose to became a REI, so, I have a lot to do in front of me, looking forward, what I do is trying to analyze mls deals using bigger pockets analysis tools and see if the number make sense, with my lack of experience there are some deals that still can work, in theory, but I know I have a lot to learn about evaluating deals.I also like the idea of buy and hold, while getting positive cash flow, from the beginning, the market fluctuations does not really affect your property value, till you are ready to sell it.I am ready, willing, but not able yet to buy mi first deal, but when I get there, I won't be waiting for the market to be better, I'll keep looking till I find a "decent" deal to put my money to work for me and/or with me.Don't get me wrong I may take more Than 2 years, but I doubt it, deals are been made in Miami today, Is a fact, I know a couple of investor doing it.

(Learning from a mentor, reading more, evaluating 5 deals day).

There are too many variables that go into a buy and hold purchase and everyone has their own strategy, sometimes you will have to miss out on some nice properties because the buy does not make sense but if you have put in a ton of offers and none are being accepted then you probably need to re-evaluate your strategy.If all you are looking at is straight COC ROI you might be missing the boat on some other things, do you ever take in to consideration the tax benefits to buying a long term rental?

I have dreamed of developing the lot, but have no professional know-how in evaluating the financials/costs of new construction, permiting, environmental reports, etc. to come to a conclusion if it would be a profitable/worth my time.

Then you need to evaluate the deal. 

I haven't purchased anything, I need to evaluate first!

you need to be able to evaluate two things, the deal and the borrowers ability to complete the deal as stated.