I also would love the create a platform to organize the countries real estate cycles per area. like an informational web site. 

That is why you have to trace the interest on where it is used.3) If you have another trade or business and deposit the money in the business account, there is an exception on not having to trace the interest if you have used the proceeds within 30 days.

I just saw this post but am definitely interested in meeting up in Cerritos for a casual meet and greet if you organize another one!

When I have previously checked into this with my accountant it seems their are very specific tests to pass to be considered a materially participating passive investor, namely that you must spend half of your time and at least 750 documented hours in passive real estate to qualify to deduct depreciation. 

My objective is to build a relationship with an accountant who can point my wife and I in the right directions in order to lessen our tax burden as much as possible. 

Real purchase price - $3500Rehab - $4000Lot Rent - $164 per month Mortgage - paid cash Insurance - $350/year  or $30/monthProperty Tax - 653$ per year  or 55$/monthRent - 575$/month  - never been late never missed payment I manage my properties at the moment so I am putting all rent money aside for repairs and re-investing 326$ Left for the account every month After this property went smoothly. 

I suspect that other factors come into play when making a decision about this investment and I have plans to take them into account as I continue my analysis.Okay, on to the main topic of discussion.

How about the cost to maintain an LLC if you have one, accounting costs, or bank service charges? 

I agree with Account Closed above.

You create systems so you don't have much time needed to manage (even remotely) and you save the PM fee.My tenants pay via Zelle or they deposit into my account at my bank.