Ideally, we'd love to find a duplex or multi-family property with the potential to live in and rent out.

I don't rent directly to the individuals.  

@William CoetThe big players definitely approach these markets differently from individual investors.

An ideal bank would  allows one to set aside tenant's deposit money in a separate account that earn decent interest and is landlord friendly.

A Beneficial Owner is an individual who either directly or indirectly owns or controls a company.

Does it have to be 100+ hours for one of us individually, or can it be 100+ hours for my spouse and I combined?

Ideally, we’d like to sell both of the rentals, and use the cash to place a down payment on a larger multi family home investment property, maybe valued somewhere around 400-600k.

There are 7 material participation tests and these are the 3 most common for real estate investors AND you need to meet one of them: Spend more than 500 hours on your rental businessDo substantially everything for the rental businessSpend more than 100 hours on the activity and no one other individual spends more time than you doAnother way to offset non-passive income (e.g.

Once you identify trustworthy individuals, then you can proceed.Best wishes and best of luck on your journey!

This bill is misleading as it states it's to help the individual  losing the house by giving them the equity.