Conduct thorough due diligence since REOs are often sold as-is with potential issues.

However, this is a difficult qualification to meet, especially if you have a full-time job outside of real estate.Don’t worry if you aren’t able to qualify for REPS status, because there is another strategy that is referred to as a “loophole”, which is the STR strategy.Per Section 1.469-1T(e)(3)(ii)(A): there are six exceptions where your rental property income is not automatically considered to be “rental activity” and thus may unlock the door for being able to offset these losses against your active income.The average customer use is seven days or less.The average customer use is 30 days or less and significant personal services were provided (for example, daily housekeeping).Extraordinary personal services are provided, regardless of the duration of customer use.The rental is incidental to a non-rental activity.The property is available during defined business hours for non-exclusive use by various customers.The property is used in an activity conducted by an S Corporation, partnership or joint venture in which the taxpayer holds an interest.If your property qualifies by meeting one of the exceptions above, the next step is to demonstrate material participation in the rental activity.

The bill states the Auction house conducting the sell can not start the Auction below 67% of value of the property. 

Quote from @Rajagopalarao Paidi: How much value goes down for a house with foundation issues, found a house for FixNFlip, they mentioned it has foundation issues and they got them fixed, but whats the value reduction from market price , How safe it is to purchase house like these Not safe at all unless you have an INDEPENDENT inspector who really knows foundation issues gets all the documentation from the seller and talks to the seller’s contractor and then conducts his own inspection of the foundation, house, and surrounding lot.

“If corporate feels they can make more money if they can get that person out and get somebody new in there, they can,” Torres said.Eviction by golf cartAt the Cyprus Apartments complex, with rows of tile-roofed buildings and more than 500 units, evictions were conducted under the shade of a golf cart as the temperature crept to 109 degrees.April Cordova, the property’s manager, surveyed the damage at an already empty unit.

You should have someone local who can drive by to check on the property, respond to emergencies, conduct regular inspections, etc.

If you are a smaller check writer, it’s still important to conduct adequate diligence on the deal and the GP but there shouldn’t be any alarm signals going off solely related to the investment minimums. 

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Looks like a disorderly conduct issue within the past year.

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