CPAs often advise against pursuing this designation unless the time commitment and documentation are robust, as failing to qualify can result in IRS audits or penalties.The 500-hour rule pertains to material participation in specific real estate activities or businesses.

I'll be specifically looking to start in the Cincinnati, Ohio and lean towards targeting buy and hold single family and potentially multi family as well.Any advice is appreciated and I look forward to connecting. 

Ensure you are buying in an area you want and can see your family living in.

To OP, it's not as scary as you think it is, this will be your first home purchase, you can purchase a multi family or SFR and house hack.

Huntsville is growing, and families are always going to prioritize good schools.

The common thought is to not rent to friends or family.

Quote from @Kris Kempe: Hey BP fam, Have a single family home I got under contract and planned on wholesaling.

Many who started out as Novice beginners with fix and flips and now do large new construction and Multi family projects. 

Frank, For a rookie investor with low capital looking to build a rental portfolio, the best strategy is house hacking: buy a small multi-family home with a low down payment (FHA or conventional loan), live in one unit, and rent the others to cover your mortgage.

Do you know if this would be an issue when it comes time to having my 5 year DCA inspection in ( mid 2025) as the property is only register with them as a 4 family?