Readers are advised to seek professional advice.

Of course it's hard. 

REmember, the licensure course doesn't tell you anyhting about being an agent, how to get leads (thats pure sales), how to conduct a transaction, how to save the deal, etc. 

Of course there's a few risks/cons as well, but overall a good experience.

of course, consult with a professional, but recommend starting here https://www.irs.gov/taxtopics/tc701As mentioned, you still have to pay the depreciation unrecapture.Good luck.

Recommendation would be to have a professional look over your situation. 

I'm curious what experiences people have had taking tax deductions as a non-professional REI.

But, the owner occupied property is different because you will likely have to use a conventional loan which requires 12 months seasoning (waiting period) to use the new value but of course that 12 month would start from when you buy the property so it will obviously take you some portion of that 12 months to build the house.  

For example, if you dedicate enough time to real estate businesses and real property trades, you may qualify for the real estate professional tax status which is potentially a great way to reduce high W2 taxes. 

The plaintiff attorney now sees an “unprotected” “juicy” $375K equity available to pay a creditor judgement, and of course his 40% contingency fee.