I find that using the tools build in to the platform apps make it pretty easy to self manage.

I was just wondering if that was sufficient.

However, if you materially participate in a business or real estate activity within the LLC, the income may be classified as active, which could allow the losses to offset active income.Ex: Self-Rental: If you rent property to a business you actively run (like a business you own and operate), the rental income can be treated as active under the self-rental rule.Material Participation: Material participation is the key factor here.

Generally your hours working at BP as a W-2 employee would not be part of RE professional hours unfortunately.For those who are RE professionals, gain on sale of rental real estate is still capital gains and still avoids self employment taxes just the same for those tho are not REPS so there is no downside to being a REP in the example you provided Scott. 

There are budget-friendly self-management sites that make setting up applications and collecting rent simple and again, you can pocket that 12%.

We own multiple commercial properties in our portfolio across several states (both local and not local), that we self manage, so that part I am not worried about at all.

He self-manages, is his own handyman and had to pull out the little equity he gained to pay for roofs and HVAC. 

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

We’re one ofthe few property managers that require W-2’s and a bank statement and we go way beyond the traditional, “income must =3x rent” qualifier.Below is more information about what our Applications Department does to screen applicants and find the best tenantspossible for your property.Required InfoWe require the following from each applicant over the age of 18, that is not a dependent of anotherapplicant (as evidenced on a tax return):Copy of acceptable state picture IDRecent YTD paystubRecent W-2Recent Bank Statement, all pages, no info blacked outRecent tax return if self-employedApplicants are often slow about turning this information in, asking us why we need it and then takingseveral days to submit.

We self-perform the construction work we like to do.