To qualify, you or your spouse need to spend 750+ hours per year and more than 50% of your total working time on real estate activities.

Save money, pay less taxes, spend it on real estate and the stock market. 

My advice for you is to spend time learning about the real estate market and know your investment strategy. 

Commit to spending less, paying off high interest credit cards, maintaining positive cash flow in your personal finances, and cleaning up your personal balance sheet.  

At the end of the day, I asked myself would I spend $500k on this deal.

For example, I’m doing three side by side duplexes and it’s costing me $135 psf, but I had to spend an extra $10k per foundation because of bad soil, and the smaller the property the higher the cost psfI’m working on a 28 unit with elevator, demo required, green roof, and it’ll cost me around the same psf as the duplexes.I’m doing three side by side triplexes which are full renovations, basement digout, all new facades, and that’s costing me about $106 psf for construction Non of these numbers include architecture, geotech, MEPS, environmental, utility plan, or finance costs

You will spend $10-$20k to put the PPM together and then if you do audited financials that will run you five figures per year as well as tax returns are not cheap with all the K-1's.

You can spend as little as $100 to form an LLC, or you could use an attorney and spend $1,000 or more.

If your startup costs are over $55,000, you lose the immediate deduction, and the entire amount would have to be amortized over 180 months (15 years).Here’s an example to clarify:•If you spend $7,000 on startup costs (such as attending BPCon, legal fees, and market research), you can deduct $5,000 in the first year and amortize the remaining $2,000 over 15 years, starting when your business is officially active.

I don't let myself spend any equity from properties (even when I was scrapping and could have really used it) don't touch that equity!