When I have previously checked into this with my accountant it seems their are very specific tests to pass to be considered a materially participating passive investor, namely that you must spend half of your time and at least 750 documented hours in passive real estate to qualify to deduct depreciation. 

The test is pretty tough if too much material is thrown at you!! 

@Costin I. testing this out.

Things I have done so far-read many posts on biggerpockets-test drove an area I'm interested in, looking for abandoned homes.

The inspector was there for 5 hours with my wife swabbing and testing every door jamb, window sill, wall, floor and ceiling in every room of the house.

The current management company that I've been testing out has not done anything to the two properties I gave them, which are vacant.

Switching vendors means switching tanks and costly pressure tests of the lines each time.

That's obviously assuming the investor can get 5 more units, but expect them to begin having conversations and testing the waters.

Do you usually include the Radon testing in your home inspections?

Legal Services of New Jersey suggests that all tenants get a signed receipt for all rent payments and only pay by check or money order.I would suggest asking them because I think they will be the most likely to bring any test case in New Jersey.