I wanted to get some insight from others on if this is true since I can't find a good answer on the IRS website, and if it is true why does anyone want to gain real estate professional status?

----For others reading/commenting on this thread, I would like to clarify a few items:-We have hundreds of builders and property managers that have been approved to market their services on our platform.

Hey Alberto, welcome to the BP community.Wishing you all the best on this new journey.

Your spread looks decent on paper $150K purchase with a $200K sale but with only $5K in rehab, I’d be asking what exactly needs to be done and if that’s truly enough to maximize value.

It makes the math very tough on purchasing, at least from my perspective. 

Just focusing on the passive income you want to achieve will leave you chasing cash flow which will have you buying properties in worse areas with harder tenancies that seem to cash flow better, but will have large cap ex.Any time someone asks a question about where to invest and it can be anywhere, they aren't ready to invest and are opening themselves up to every pitch in the world on an area.

Tenants don't do ANY work on your properties, never a good idea. 

A lot of credit unions will lend on 1-4 unit investment properties with great terms.

Or are taxes one of the things that is line on the spreadsheet that just has to make sense in regards to the overall deal? 

Not only should we be using a professioanl photographer, but you need to coach them on which pictures you want taken.