I have already read Rental Property Investing by Brandon Turner and I'm looking for new material to read.

No commercial business owner wants to own the building when they can triple net lease and instead just pay for furnishings, taxes , insurance and maintenance.The ConC return on a triple net leased property is far higher than on a property owned by the management company.Passive investors can still take advantage of accelerated depreciation and cost segregation thru material participation of new construction of a STVR home. 

.- Did you materially participate?

You must reinvest the $520k in “cash” you have left after paying off mortgage and $80k in closing costs or you will owe taxes on cash retained even if you buy more than $920k in property  You can invest in any number of properties but it’s much easier if you list 3 or less replacement properties.

There is a lot of material on the topic. 

For materials and/or services for any of my investment properties where the contractor/person does not give me a receipt, I do one of two things:1).

Now, for my learning if you please, does it make a difference that i "materially participate" in the business?

Happy to send over some material that might be helpful as you get started.

Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

In general, the character of the income is retained through the LLC.