If you materially participate in the LLC’s operations, you may be able to treat the income as active.Material participation in a rental activity, with or without an LLC, still runs into PAL rules.

That's really cool and I suspect my dad mentioned our operation out in KC to him.

Converting debt to equity if allowed by the operating agreement is not indicative of a Ponzi Scheme.  

@Sharon McCants - I lean toward the advice from @Jonathan Greene on your question.Years ago, I made the mistake of forgoing quality for quantity, which led to headaches and a fundamental change in the way our company operated and in the way I personally invested.

So, hello :)My husband and I own operate MTRs in DFW and Austin, TX.

So on a 12 unit, I would keep an operating cushion of roughly 24-30k. 

I would recommend, at least, opening up a LLC in the US and operating out of that under your wholesale business.

This company is completely on the up and up and is NOT a guru run operation! 

It could also require more time and effort, have more operating costs, and not be worth it. 

Now if rents can go to 1,100, different story.Value is based on Net Operating Income, and lending is based on Debt Service Coverage Ratio.Gino