Need Help! Passive Investor challenges?

[Martin N.]

I live in the Chicago area and I'm just getting started with a Buy and Hold strategy. My plan was to work closely with a partner located in St. Louis (where I grew up) to begin buying and holding single family homes. I would get down and visit several times per year and manage things like financing, books, taxes etc. from Chicago.

In this scenario, am I considered a Passive Investor? Does this mean that I'd miss out on significant tax savings (depreciation or something else)? I know the St. Louis market much better than Chicago and would like to get started, but don't want to jump in if I'll be missing out on tax benefits. If so, what are my options?