If you have time, a highlighter and pencil, ready to take notes, this is an excellent article:Real Estate Professionals: Avoiding the Passive Activities Loss RulesIn particular this summary of a Tax Court case:  "In Vandegrift, the taxpayer was employed as a salesman at a salary of $120,000.

That said, I think you should start with training wheels, not with a performing note, but with a mentor, experienced JV partner, or some useful training (highlight on the useful). 2) @Dan Zitofsky mentioned this, but I think minimally if you opt to buy non-performing you should at least consider what you would do if it goes non-performing.

It really highlight the need for and benefits of business.

Not sure if it should be highlighted or blended in due to it being so low.

Chris,Just wanted to highlight that I thought this was excellent advice and a breakdown for new investors that "value" comes in many shapes and sizes and can be measured in many ways.  

You can also market your property in different ways by highlighting attributes that make it stand out for the competition - gym, dog park, covered parking, proximity to school/retail/business/highway. 

Don't forget that you may have to get a demo permit in many areas,"This section highlights OSHA standards, standard interpretations (official letters of interpretation of the standards), and national consensus standards related to demolition.OSHANote: Twenty-five states, Puerto Rico and the Virgin Islands have OSHA-approved State Plansand have adopted their own standards and enforcement policies.

Here are some highlights from my perspective.  

This lengthy response highlights just a few of the perils of a newbie investing out of state.

Pull out a highlighter and highlight the line items you will fully do.