First, accept the premise that partnerships rarely work.

There are 7 material participation tests and these are the 3 most common for real estate investors AND you need to meet one of them: Spend more than 500 hours on your rental businessDo substantially everything for the rental businessSpend more than 100 hours on the activity and no one other individual spends more time than you doAnother way to offset non-passive income (e.g.

If you’re selling your home to a stranger, have a solid contract that has been tested in the courts.

@Chris Seveney I was a Transactional Lender, single closings, buyers lender accepted seller carry back.

This means a lot of units are sitting, and we're seeing a lot of price reductions, lower offers being accepted, sellers willing to help cover buyer closing costs, etc. 

Therefore, amounts separated for by a cost segregation study would not technically increase the "non-real-estate-property" for the purposes of the 15% test.

You can do a requested search and pay the exchange fee, normally $219, and it will search an area for a precise time period and it will alert you when they find one and you can accept that resort or not.  

Even if STRs did unlock PAL (and they don't), out of state STRs probably will not work anyway, due to the challenges in meeting "material" participation test for out of state properties.

I'm 💯 with Caleb on this: Test out your flipping plan before you sell your business!

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.