To qualify, taxpayers must meet specific criteria demonstrating that they are real estate professionals who materially participate in their rental activities.How to Navigate the Rules:Step 1: Identify your real property trades or businessesHere is a list of activities that are considered to be a real property trade or business:RedevelopmentLeasingConversionConstructionReal property developmentReconstructionOperationRentalBrokerageManagementAcquisitionIf you participate in multiple of these activities, you may be able to combine them making it easier to meet the material participation hour requirements.Step 2: Demonstrate material participation in real property trades or businessesThere are seven tests to determine if you demonstrate material participation.

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The software is going to be very conservative with your write-offs.

In my experience, you can purchase the existing home and the encroachment is grandfathered in, meaning the vacant lot owner can't force you to move it.

The seller needed to move out of the country so they wanted to sell and shut down the property.

Look for the Star Bucks and Jimmy Johns to find the right type of neighborhood. 

If you have lived in the property for two out of the previous five years you could qualify for the 121 exclusion, where you get the first $250k ($500k if married) of the gain tax free.

Everyone is different and until you try the first you will have no idea if you want to dedicate the next 5 years of your life to it.What happens if you get the first one and the following happens1.

You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.Good luck. 

Most of the big land wholesalers whole-tale the deals, meaning they actually buy/close on the land (using their own money or other people's money) and then list on the MLS to sell, because it is very difficult to find buyers without widely marketing it.