So I feel it's definitely a limiting factor to a sale.I feel like I'd be narrowing down my possibilities of a successful transaction telling the seller I'll cover it and expect a unrepresented buyer working on their credit to bring a huge EMD, Purchase Option, and/or pay elevated rent. 

These are often called portfolio lenders because they keep their deals in-house and only have to get it to pass muster with the bank's board of directors (BOD), or some long-term, trusted loan officers have a limit up to which they can approve loans without consulting the BOD. 

As long as you plan on occupying one of the units and there are no restrictions then it usually isn’t a problem.Occasionally, some programs might be limited to single family only...

Basically that is just the information that pertains to the profit and loss of the property.

Smart you have a FT and PT job- I think you should essentially dive in.. but not make a "bad purchase" , since you can't win on the sidelines You absolutely want to have reserves when you invest, it would not be smart to have limited capital since if you have a major repair, you will be in trouble. 

All REI folks should realize until the check cashes the profits or losses are not real.

My experience is limited but here is what it is:Owned a single rental condo ... sold it as I later realized it was safer than I wanted to be. 

The reason this is an issue for me is that I think I can use suspended losses from other real estate to negate some of the capital gain from the exchange if its divided by 8 and then I could just decrease the basis all together.  

I was just saying in my post above that it's important that your accountant does taxes...PLUS be an advisor (which is where accountants bring the most value).To answer your question:I am assuming you are talking about a fix & flip, rather than a buy/hold.This will not go on Schedule D because you aren't selling an investment with capital gains/losses - you are selling a piece of inventory so there are no capital gains.

But if the property is worth $220k I doubt the bank will take a $70k loss assuming the alternative would be to sell it normally with realtors and have other holding costs.