Some of these are exacerbated here in Hawaii because of the high price points and high cost of living. 

If you have had mice in between the skins of the stove and the insulation is full of faeces and urine, it cannot be cleaned and you would have to dismantle the stove to replace it.  

These sections, without going in too much in depth without knowing your specific situation, basically say that you can only claim passive losses to the extent you are "at risk" (i.e. that you have skin in the game) and to the extent that you have passive income.

With hard money they have this requirement and with an equity partner I like to have some skin in the game so the money partner feels more secure. 

I got a hard money loan for the purchase and rehab, the $4,000 covered closing and my "skin in the game" The property is going on the market next week "fingers crossed" Again, there are many ideas and the neat thing about RE investing is that none of them are more right or wrong than the other, you just need to decide what path you want to take. 

We decided the best way to build income and get skin in the game is by by going the wholesaling route.

We decided the best way to build income and get skin in the game is by by going the wholesaling route.

Most hard money folks want you to have some skin in the game.

Our president is the largest investor in our fund, so we have more skin in the game that any other investor.  

You'll have to have a thick skin to own low end rentals, and who doesn't like getting lawsuit threats from your tenants or letters/ phone calls from slip & fall lawyers?