We signed a lease-to-own contract for 60 months.

Active = Income earned from Material Participation.Whether that's SMB, W-2, contract income, or prof real estate.This is income where ordinary tax is paid and losses offset other income.

If you decide to build new construction, be very careful with builder contracts out there. 

Beside RE, am also interested in gas/oil.

People had no idea what to do at stop lights, gas pumps didn't work and those that already pumped gas couldn't pay because the attendant couldn't take cash, the lights were out in office buildings and hotels, grocery stores were worried about frozen and refrigerated food going bad, theme parks had people stuck in rides screaming to get off.

You can (delicately) begin talking to these tenants now that you're in contract.

Hi BP community,The property is located in Northern California, specifically in the Bay Area. The tenant signed the lease with the property management company about a week ago. Today, the property management company c...

Is the mentor going to actually walk the deal with you, negotiate contracts with contractors, etc with you?

However, repairs or improvements must be permanently affixed and add value to the real property.Costs and Escrow AccountsThe costs of the renovations will be based on the plans and specifications for the work and on the Construction contract for all of the work requested by the borrower.

Most fail to paper the contracts, indemnification and additional insured requirements correctly.