It sounds like you are mashing a lot of different things together here.It does not matter at all if you have an LLC, or if you, or your wife is the owner - it doesn't change any of the tax positioning in the slightest.The test to be a qualified Real Estate Professional is at least 750 hours in real property trades or businesses AND  over 50% of your professional time. 

I generally agree that homes in Cleveland should be tested for lead.

Heck, I don’t even enjoy driving, would much rather have a chauffeur 🤩 But if he does and can make a fortune doing it, then cheers to him and that business.  

What it will do is drive a lot of part-time agents out of business who slipped into a buyer agent role by simply being there at a showing.

If you can find local deals (within 2 hours of where you live) that make sense, they can be gold mines. 2 hours seems to be the max that most people would drive if you HAD to do your own showings or move-in prep and local management proves unreliable.

I have had several friends suggest that it would be wiser to start off with rentals within driving distance of where I live. 

That said, do ask yourself before signing on the bottom line: if this tax strategy fails the IRS scrutiny test - what happens then?

I'd look for signs of arcing around those outlets.Other things I look for are how is the foundation, cracks in the walls (assuming lath and plaster), condition of the mechanicals, depending on what the house is built on, I may get a radon test done for the air and water (near me there is a lot of ledge, so radon is an issue in most homes). 

lie detector determined that was a lie. btw, can you drive down to Aurora and see wth is going on down there for us?

Hello am new here am nate and purest of rookie.. got nothing in my back got some dedt that can't seem to pay off car is falling apart.. and still live with parents.. still have this drive to buy a house and just rent it out or do the FHA loan.