If you research the "real estate professional status" topic, you will discover that in the past, because of the complexity of it, the courts were even getting it wrong, however now they are correcting past mistakes and it is becoming clearer as to the true intent of the law.

I just think you have discovered the realities of REI.

It's been illegal this whole time.  3 years ago one of the tenants in a different unit called code compliance with issues and the illegal status was discovered.

Here are the major pointers I have discovered.

I discovered this when the basement was suddenly filled with disgustingness.

I have discovered an alternative to treat asphalt shingles to help us on the selling end in the future.

However, in speaking to lenders I discovered that LLCs do not qualify for a traditional Fannie or Freddie backed 30-year mortgage.  

But as it turned out the second test came way down because of all of the remediation we had done after the problem was first discovered. 

The ONLY time we pull out of a deal is if during our actual inspection we discover real problems that we couldn't see. 

It is great you are discovering it so early in your life and will not waste years.