@Albert Aitov   Give us an update please.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.

The home was remodeled and updated.

I needed a consistent cash flow while still holding onto my regular full time job.

Update: We ended up backing out of the commercial deal, way too many issues going on and shady practices that we were not comfortable engaging with.Now the question is what to do with the chunk of money left after we pay taxes.

I’ve included a draft of the updated lease agreement and if anyone has any feedback on it.

Do you have any updates from your PadSplit journey?

During our first deal we'll look at communication and regular updates.

Newest update is that the buyer is threatening to sue and place a lien on the property.

The goal here would to help educate and avoid potential pitfalls before wiring $50,000, $100,000 or even more.We would have educational modules, regular meetings and ZERO solicitation.