@Lisa Kinman the house is in pretty good shape, we're going to do a full remodel on it and put up a fence and along with fit the patio covers. 

@Ray SlackBenefit of REPS: deducting rental losses against ordinary income - correctDrawback of REPS: self-employment tax - incorrect, no SE tax on rentals, no matter whatBeing v "not being" REPS - incorrect, it's not a choice, you have to qualify to be eligible to claim itNo loss without mortgages - not necessarily, you may be able to generate large losses via cost segregation and accelerated depreciation

This market has over 40,000 units on STR programs, there is no room to be average or ordinary. 

They're real searched them up in Sunbiz nothing out of the ordinary all the addresses match...It just seems really weird that you have 59 Google reviews and no Facebook page or mention in a real estate forum..

@Patrick Philip   Don't want to pay 50% of my $130,000 gain in ordinary income tax.  

A brokerage contract may be oral, and the law applicable to ordinary contracts governs.

I have an opportunity to buy a nice 1x1 condo for $240000 in an decent area of Santa Ana (which is an OK area of central Orange County [it isn't the safest, but it's very convenient to a number of business/universities with lots of potential renters]).The condo is 713 sq ft, with community laundry, semi-upgraded (newer/upgraded cabinets in the kitchen, laminate flooring throughout, tile counters), carport + 1 extra parking, large patio, 1st floor, corner unit, lots of light, safe/gated community with good amenities (pool/spa, club house, sauna, small fitness room), location is convenient to shopping, freeways, other cities, etc.Purchase price would be $240K with 20% down.

(I actually wont touch properties this cheap at all since I lose money on them)Nothing else looks out of the ordinary.

Depends, no not the underware, on the project.Let's say you do some light landscaping, replace pedestal sinks, paint, polsih, and have new carpet installed, a newbie might swing that.Next project,gut the cabinets and sheetrock in the kitchen, replace the shower/tub, match a toilet and sink, change interior doors and hardware, open the back kitchen wall for a patio door and build a deck.

No, it was not considered Ordinary Income.