The IRS uses material participation tests to determine if you are actively involved in an activity.

Markets where you can go view properties in a day of driving or flying is a good place to start. 

Very few succeed with this model and those who do are the contractor types who are driving around in their work truck putting out fires all day.

That said, I’m also open to other investment opportunities (especially those within a reasonable driving distance of Austin).I’d love to connect with anyone who has strong knowledge of the Austin / regional market or experience with similar investment strategies, so feel free to reach out.

From there, we moved to FL and I found several houses by driving around or riding my bike in the neighborhood.3.

You can drive for dollars, go after pre-foreclosures, distressed sellers, PPC, organic search SEO, MLS expired, FSBO's, r.e. agent network, estate and probate, on and on and on. 

So yes, you need to set aside enough money to pay future taxes.Taxes are calculated only on your net profit - i.e. after everything is deducted, including labor & materials, holding costs, financing costs and business overhead such as marketing and driving. 

I am curious how many people reached out to a local flipper and said "hey can i shadow you and check in on projects for you doing drive-bys and inspections or make calls to coordinate subcontractors".. 

I personally recommend doing a small project together first to test the waters. 💡4️⃣ General Tips: If you're partnering out of state, legal agreements are a must.

Nothing crazy, but a good starting point for me to test things out and see how it goes