Eventually, lawmakers realized the negative impact this was having on the real estate sector and created what is known as Real Estate Professional Status (REPS).

With respect to Tenant's back grounds, pets, rental history, job status etc etc we are always looking to learn but feel that aspect is strung and thorough.

Do you qualify for real estate professional status?

They even send out notifications of property status if hurricanes are headed toward a property and their plan. 

As for a Home Owner Association (HOA), whether it needs to comply depends on its legal structure and tax status.

My spouse is trying to meet real estate professional status with the goal of offsetting my W2 income tax. 

One notable exception is that nonpassive losses can offset anything, which explains our current obsession with STRs.Specifically to your questions.1 - No, cannot apply PAL against dividends/interest but probably can apply PAL against your K1 income (as long as it distributes ordinary business income and not interest/dividends)2 - STRs do not unlock prior year PAL, and neither does Real Estate Professional status, by the way.

Since most of them don't have much credit history, I'm thinking to ask for proof of their student status and also check with their previous landlords.

Many people say "I know for a fact none of my family has judgments" but family members regularly do not discuss their financial problems with other family members, may be unaware of legal issues and their standing, and there also could be fraud.You should also consider any prior spouses among the parties that ever lived at the property as a marital interest attachs regardless if they were on title unless resolved by express court decree (in which case former spouse should join the conveyance).An attorney is not required - though you will need a properly drafted deed, GITREP form, and affidavit of consideration to record.

Because of their background (95% of our residents are recovering heroin addicts) and payor status (50% are paid for by their treatment centers, the rest split between family or self-pay),  standard 1 year leases with monthly payments do not work.