Well worth it IMHO given poor performance of RTO/seller financed zillow listings. 

Just completed my third self-storage conversion in October with my W2 job at Elm Builders.

You want to make sure that the developer can perform and that the type of development proposed is needed in the market and that the neighbors don't oppose the project.

Obviously past results are not necessarily indicative of future performance, but it seems like a great investment for accredited investors to get a low-risk, solid return in exchange for some illiquidity.

For instance, properties with an accessory dwelling unit (ADU) on the lot that can be implemented as a long-term or short-term rental can perform exceptionally well.

Still own it and performing very well.

For test 2 there are three ways to pass this: 1. 500 hours materially participating in the rental activity2. 100 hours and more then anyone else3. perform all substantial services. 

.👀 Risk ManagementBoth investments require risk management:Stocks: Company performance, market conditions, economic factorsReal estate: Property maintenance, tenant quality, local market changesBut guess what?

If they have a 100 unit property and 5 units are eviction candidates, they can leverage and hold out a bit since the other 95 units are performing.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!