This can be fairly straightforward, depending on your agreement and if a partnership return was ever filed, you'll want to report half or your portion of the basis in the property as well as half the sale price minus expenses.

Mind Excess Business Loss Rules.

Art Cost Basis Rules Clarified by IRSBy: Spencer M.

Quote from @Anthony King: Are there any rules/regulations regarding private lending from family members?

This is the new FinCEN rule where you do have to report beneficial owners or those who have substantial control to the government watchdogs.

The key factor is physical presence, which, as you mentioned, requires being in the U.S. for at least 183 days during the calendar year.However, it’s essential to note that the substantial presence rule can apply to foreign property owners who spend extended time in the U.S.

Average home value in our portfolio is about $175 to $185K and average rents around $1600.00 (Yes not at the 1% rule). 

. - Expertise in local laws and rules: Investing in real estate is hyper localized not only for value and potential but in rules and regulations.

If you see someone violating the rules, create a post with "@moderators" and we will receive a notification and respond.Again, welcome to BiggerPockets and happy investing!

It's important to factor in HOA fees, which can eat into your cash flow, and to carefully look over the rules set by the association, some have strict rules on rentals.