It depends on if IRS considers you an investor or trader. they look at different factors, I pulled court cases where they looked at these:(1) the taxpayer's investment intent; (2) the nature of the income to be derived from the activity; and (3) the frequency, extent, and regularity of the taxpayer's securities transactions (Kay; Mayer; and Moller)  A taxpayer is a securities trader only when both of the following are true: (1) the taxpayer's trading activity is substantial; and (2) the taxpayer seeks to profit from short-term swings in the daily market movement, rather than to profit from the long-term holding of investments. 

@Jonathan RobertsWelcome - There's quite an active group from cheyenne here.

May I ask if you have been actively practicing?

Look for a decent deal, maybe a value added play if you can.

Play with the PMT function and other formulas in excel for awhile and you will see why this makes such a difference.

Anyway, if any of you are playing in this space, reach out and let's compare some notes.

@Seth Teel, broker/owner of Somos Real is a top contributor here on BP and very active investor here in San Antonio. 

To obtain financing it can't be larger than 25% of the total community square footage. 10% of the budget to go towards reservesNo active or pending litigation (HOAs like to go after the developer for construction defects)No assessments (ask for the last 12 months of board minutes in your offer.

In my opinion, the best use of your time would be talking with investor-friendly agents and commercial brokers, explaining your criteria and actively following up with them.

So if you can intercept hospital housing staff actIvIty that may be helpful