You could state high income or high net worth does not equate to financial literacy, but without an actual test it may be the best indicator. 

But there are other tests and if planned correctly, you don't need these two tests or even track hours the first year if your participation is substantially all hours.

It WILL always be like smashing through a wall with your head as fists as the hammer, you will "get bloody", it will hurt, it will exhaust you, it will test you to your breaking point and beyond.

I am just 3 more tests away from obtaining my Architects license. 

A duplex is more flexible as you will have privacy on your side and can test out any strategy with the other unit ( LTR, MTR, STR, rent by the room).

I don't really need to know much else about someone - if they can't pass this test, why should I believe that they will be able to run a business that will generate cash?

The 500 hours test for material participation test has 0 to do with your W2 job. 

Originally posted by @Darius Ogloza:Simple test. 

Once you narrow it down, start with small jobs to test their reliability and quality before giving them bigger projects.Building a solid network takes time, but having dependable people on call is a lifesaver for your rentals.

They tested the appliances thoroughly and offered a one-year guarantee.