Hi All - I've seen quite a bit of confusion on the application of the Passive Activity  Loss Rules and Short Term Rentals. 

Good point, I guess I am wondering if you frequently see deals that meet the 1% rule? 

My rule of thumb is a .5% savings to refi so I'd want to get you at least to 6.250 or lower.

America has the 3 enlightenment Pillars that are true Civilization. 1) Rule of Law, 2) Freedom of speech/conscience, and 3) One life One voteThese 3 ideas are the air we breathe and water in which we swim, and give rise to actual and enforceable property rights, which allows for people to safely save, safely invest, safely create, and safely live a full and expressed life.

I would only hire out for major work I can't do myself or emergency repairs.I've dealt with older houses before and the house may be fine for occupants but there's still usually lots of things that can be fixed / improved so it seems a house that isn't perfect would give more opportunities for ongoing maintenance of this sort.To me it seems fairly straightforward to meet the time requirements but I think I need to have extensive documentation?

I have a lease addendum that are house rules, specific to the property.

If you don't know about the FEMA 50% Rule, please look into before you buy and try to rehab a home in a flood zone.

Rest assured; the process is designed to be straightforward. 

But remember this is not straight forward as the basis of the new property is derived from the adjusted basis of the relinquished property plus any amount you paid.

Ironically most investors don't slow down to ask themselves that simple question but will prepare a multi tab excel spreadsheet justifying the reason behind purchasing the low barrier home that lacks fundamentals because it meets the 1% rule or is a good BRRRR candidate because that's what they are taught.