I wonder if California/IRS is looking for him, and if he's evading reporting income innCA I wonder if he's doing that in his current business.

Happy to hop on a call to hash things out, if you'd like.

Based on this link it seems the IRS still qualifies it under ordinary income.  

Let's hop on a call soon & touch base!

By the time the agent is done working between showings, writing contracts, negotiations and inspections irs weeks of work. 

Hey Ammar,Yes, you are correct that owning and actively managing rental properties can qualify you for real estate professional status (REPS) under IRS rules.

We are always down to answer any questions, and we hop on multiple scheduled calls a week where we go over deals, and just talk real estate investing.

This will happen with high frequency borrowers not every deal is perfect and some need special attention and so With folks like @Jeff S. and I we hop on the phone and work it out or have face to face and work it out..

It will include an approval letter from the IRS.

I received paid leads, happy to share my experience so far, let me know if you want to hop on a quick call!