To be honest with each of you, he’s not the only one facing this dilemma... without conveying too many details, let’s just say he comes from a very big family and each young family member receives this “inheritance” when they turn a certain age.

Open and honest business practices, especially in real estate are so rare.

Investment Info:Single-family residence wholesale investment.

Purchase price: $8,000 Cash invested: $2,000 I purchased 2.5 acres of Raw Land in Joshua Tree, less than ten minute drive from the park and downtown area in 2018.Purchased via seller financing.2k down with monthly installments to pay out rest.Current similar lots are selling for around $65kI plan to hold long term Would eventually love to develop something on the land-either an art park or residence.

Investment Info:Single-family residence buy & hold investment. 4 bed / 4 bath, 3500 sq ft

Is it realistic to pass material participation test if the property located far from primary residence, like vacation rental?

He is honest and never led me astray in both rentals I’ve bought from him. 

You may be able to factor in certain improvements to your personal residence so when you do move out, you can be eligible to depreciate it.

But as a property grows in size your rent/sq ft generally decreases.And right now the profit from that primary residence is tax free!!!  

Investment Info:Single-family residence buy & hold investment.