Buy a property you could live in and be proud to own.

While Im not currently seeking distributions (we are in series B shares - those that participate in the upside and "may" accrue), they have made distributions and we are simply building another cash reserve.

Spend more than half of your total working hours in an RE business in which you materially participate.2.

So again, to be a passive participant is hard for all the reasons you note and more.  

For STRs, material participation rules apply, and STR income is treated as non-passive, allowing losses to offset active income.This post does not create a CPA-Client relationship.

Our volunteer fire department invites surrounding departments to participate.

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.

Assuming this is in fact a good deal, and your friend is a qualified GC, instead of trying to be the lead investor, he should be searching for someone who has the balance sheet to take down this deal on their and be a transactional participant.

Hello,I was wondering if anyone has participated in the Philadelphia tax foreclosure auction recently and how long it has taken you to receive the deed?

@Glenn McCrorey  - Great Job Buddy and very proud of your accomplishments!