Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

If banks controlled all this business and did away with the broker model and like what I experienced the lender was a bank employee and was on salary not commish.. docs are prepped by the bank ( on my commercial loans that is free no charge NO JUNK Fees at all just appraisal and 1/2 a point to maybe 1 point. this is a stumbling block for owner occ especially first time buyers who dont have money for closing costs and generally need the seller to contribute you know I see it all the time on my starter homes that I finance for flippers.. virtually everyone has seller assist on it to pay for all the junk fee's and brokers fees.. its getting paid somewhere and that just makes it harder for those buying homes to live in ..  

From what I have seen, it is more common for a litigation claim to arise from a partnership relationship, employee relationship, or other business relationship than a claim by a tenant against a property owner.

You would have to convince the county recording offices, who are run by career employees who in some instances still are using fax machines and rotary dial phones. 

@Ori Skloot  If you are paying your employees $ 27 an hour , with withholdings , workmans comp , and the other related costs , they are costing you around  $ 38.00 to $ 42.00 an hour The true cost of your labor was closer to the $ 9000 mark . 

I have a written office policy manual that explicitly permits my employees and sales agents to carry at their discretion.

Sometimes large employers will rent furnished apartments for their employees coming to town on a regular basis.Also, if you believe strongly in the appreciation of the house, how bad would the negative cash flow be if you did long term rental? 

I've worked with government employees, families who have been displaced by fires, and other clients / employees who are my tenant but aren't financially responsible for the lease.

If you are a busy W-2 employee or running a company, Home Team Vacation Rentals can take care of all the nuts and bults of purchasing, setting up, and managing a STR.

Didn't like the vibe from his employee so backed off.