Our client gets OPM and they make money  but they have to run the asset.

I would encourage you to look outside of Austin since going there shouldn't be too difficult if you need to do something in person, you can even drive some of the areas yourself and do your own evaluation of it. 

That doesn't make them bad, per se, it is just a very difficult market right now. 

This treatment ensures accurate financial and tax reporting, as the credit is part of the sale transaction rather than income.This post does not create a CPA-Client relationship.

I am also a realtor with clients who are investing in MTR's in my market, as STRs aren't allowed.

@Elizabeth RossFor properties under 100k you will likely need to use the BRRR method as its difficult to get a 30Y loan on a properties valued under 100k.

If they require an inspection, keep in mind you will not be able to fix any issues as it is a federal crime to alter a HUD home in any waySo in summary, it can be a very difficult and costly process to activate utilities and in many cases not possible

Unfortunately there's a lot of alarmist/scare tactics utilized to upsell these services that do nothing but generate revenues for those who are selling the service and often leave the clients with recurring expenditures i.e  annual maintenance costs.  

Some of our clients do - some don't.

Talk to your tax advisor about how to release your passive activity losses based on your situation.This post does not create a CPA-Client relationship.