All Forum Posts by: Felipe Manoloff

Hi everyone,

I currently work full-time as a W2 employee, but I’ve been learning about the Real Estate Professional (REP) tax status and how it can benefit investors. From what I’ve read, you need 750 hours per year and more time in real estate than in your other job, which makes it difficult for someone like me with a full-time W2.

I recently heard that there may be a way to qualify by working part-time (15–20 hours a week) with someone who is already full-time in real estate, almost like apprenticing or assisting them. So I could both learn the business and work toward REP status.

Has anyone heard of this being possible? Would hours spent helping another real estate professional (e.g., property management, acquisitions, analysis, etc.) count toward the 750 hours? If so, who would I need to connect with to set this up—an attorney, CPA, broker, or someone else?

My long-term goal is to eventually qualify for REP on my own properties, but I’d love to know if this path is realistic.

Thanks in advance for any guidance!

Hi all,

I’m hoping to get some advice from those more experienced in real estate and property management. I have only owned  a home in Texas for 1,5 years, and my family and I may be relocating to another state within the next 12 months. Instead of selling the house and losing a significant amount to closing costs, so we also considered renting it out.

The challenge is that I don’t have much experience as a landlord. I’ve already reached out to a few property management companies, and while they would handle most of the responsibilities, they’ve informed me that we’d likely rent the property for $500-$600 less than our mortgage payment. Additionally, the management companies would take around 10% of the rent for their services.

Given this, I'm exploring whether it would be a smart move to refinance when interest rates drop, and possibly form an LLC to transfer the property into. I'm thinking this could help us with tax deductions, especially if we operate at a loss.

Does anyone have experience with a situation like this? Are there specific pros and cons I should consider when it comes to refinancing, forming an LLC, or even continuing with the rental given the negative cash flow?

Any advice or recommendations would be greatly appreciated!

Thanks in advance!