Her work in this way again is not influenced at all by if it is an LLC in her name, your name, or both - it is based on actual hours worked.IF and AFTER you meet the above tests, you need to prove that you materially participate in your RENTAL trades or businesses, generally this is at least 500 hours per year, but there are other tests as well.If you qualify for all of the above, now you can use tax losses from rental real estate to offset W-2 income. 

Is there an other alternative ?

Below are some general notes on DSCR loans:* usually used for single family or 2-8 multi family unit properties (fits your scenario)* must be for investment, non owner occupied (if looking for a product for alternative qualifying solutions for owner occupied there are other products)* can close in a personal name or LLC* usually 80% LTV for a purchase (20% down payment) & usually 75-80% LTV for cash out refis* prepayment penalties vary and are optional, but the higher the prepayment penalty, the lower the rate / options typical range from no prepay all the way up to 5 year prepay and structures vary for how those penalties work (3 year is my most popular by far)* appraisal most likely required and paid out of pocket during transaction* can be used for long term, mid term, or short term rental properties * generally 1%+ is the desired DSCR ratio but you get better rates if the ratio is higher (usually rate breaks kick in at 1.15%+ or 1.25%+) and you can still get the loan done if ratio is lower than 1% but the rate will reflect that (DM me if you wand help learning how to calculate the ratio)* the average time to close is 21-30 days* fees vary lender to lender and product to product, but $1595 underwriting plus title fees is pretty standard* 700+ credit is preferred to get max LTV, but plenty of options if credit falls below that* a typical loan minimum is $75k (have limited options for $50k+) and typical loan maximum is $3-4m (have limited options for $4m+)* 3 months reserves usually required, having 6+ months will usually result in better loan terms, 0 reserves can still get the job done if you go with a program that allows you to use the cash flow as reserves* 30 year fixed, IO, and ARMS available

Last night, I learned that there's a problem with the home: during the inspection, six gas leaks were identified, and repairing them will cost approximately $7,500 in labor and materials.

If you don’t need all the cash immediately, you could store the unused portion in a high-yield savings account or line of credit for future investments.HELOC Option: Another alternative is to consider a Home Equity Line of Credit (HELOC) on your paid-off rental.

Don't make exceptions unless you have solid alternatives to offset the risk.

The BRRRRR is not dead and value add investing will always make sense when one looks at alternatives.

Another reason is just market knowledge and knowing what a repair of a certain type given material and labor rates in an area should cost. 

I mean material as recently as late 2022 was totally off-base-- the real estate rookie bootcamp, you had porfer Morby on here, the Carl twins that promote STR as recession proof, the list goes on.

To make the most of this opportunity, I'd love to hear advice on promising emerging cities to focus on, the advantages and disadvantages of each, and alternative financing methods beyond traditional mortgages