A recent article by BP: "Top 5 Alternative Investments for Real Estate Investors in 2024," which was sponsored by "atminvestors.com," listed the #1 Passive Investment opportunity as ATM investing (of course).

That said, there are alternative ways to meet the requirements, and with proper planning, you might not need to rely on these specific tests if most or all of the participation comes from you during the first year.

Alternative I have a daughter up in Davis that we could help house hack…

If you want passive just invest in VNQ and withdraw x% in addition to the dividend vs getting pure distributions from a private reit, much safer. 

What's the alternative and what's the question.

And then we negotiate with the owners on the "owner financing" options that they would give to us (if they are even open to it).If someone needs "private financing" or "alternative" financing...we can still make our normal realtor commission here and then they can show for any property.I hope some of what I am saying makes sense. 

Crime is still a problem in certain areas but if you stay in the suburbs that's where the most demand is so typically farther east and either south or north will get you into safer areas.

Looking for alternatives.

If it’s not required by law, you might ask why it’s being done now and if there are alternative ways to address the concern.Going forward, consider setting a clear spending threshold with your property manager.

@Devon Shives,Your situation has a lot of potential, but here’s a thought: A cash-out refi could work if you’re confident you can use the $30-35k effectively for your next property, but the higher rate and payment might indeed limit your borrowing power for another mortgage.Consider these alternatives:1.