I wrote a blog about SEC 8 that you may find useful.https://www.biggerpockets.com/blogs/9232/blog_posts/55313-intro-to-section-8---your-perceptions-vs-my-realities

In reality, it shouldn't much matter.We recently did a HELOC on a property that we have lease-optioned. 

I'm sorry if that sounds cynical,  that's just the reality of the situation based on my experience.Keep your head up bro.

I guess it is what it is but the reality of those numbers is a little discouraging.

Reality yes, I should have given her notice to move when he said he was leaving. 

Maybe they need a wakeup call that they have X days until their home goes to auction and they don't want to face reality. 

In reality it may be more than 50% depending on the property age, occupancy, and other factors ("all bills paid" have higher expense ratio than 50%).CAP rate is derived from comparable sales.

Then the realities that you mentioned hit me.  

@Rob SmithAnother harsh lesson in the realities of the world.

In the eyes of the IRS I believe I qualify as an investor and not a dealer which would have me pay capital gains instead of income tax.Now, the reality is that short term capital gains are still taxed at your marginal income tax rate, so it is still treated as income tax in that sense.