Depending on where the property is and the lender involved, and what he has told the lender, and so on and so on, you handle things accordingly.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity. 

Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

Why, because of the main stable coins, it is the only one on of the largest exchanges, Binance, will NOT do a 1:1.So, you're best bets would be those like USDC, TUSD, GUSD, BUSD.

@Brad Kanouse I have an idea that doesn't involve drawing from your IRA.

I bet if it were your grandmother or relative in that situation you would think differently.

This allows you to test all the systems and the people involved.  

My humble advice to anyone attempting to do creative finance is:Creative finance is for experienced investors who have access to capital if anything goes wrong.Learn the lawsDon't use a contract "off the internet", laws vary by state and are also regulated on a federal levelLearn the financing techniques correctlyDon’t skip parts of the processDon’t ever do a “kitchen table” closingUse the proper deedAn attorney can help you with the legal work, but the rest you are on your ownYour guru will not bail you out“Investing” in someone else’s deal by providing a small 2nd loan so the “investor” can pay for “cash to the seller” and for “closing costs” so he can do the deal is a very bad planKnow what problems can ariseLearn the responses and solutions to problems before they are neededKnow everything there is to know about Title and what that meansKnow who a "protected class" individual isLearn the "back doors"Learn human natureUnderstand timelinesUnderstand regulation enforcement (some of these "mistakes" have a 10 year statue of limitations ( they can charge you 10 years AFTER you do the transaction) and carry hefty fines and possible imprisonmentThe court doesn't accept "I didn't know" for an answer"Know that the source of the lead plays a serious role in some states and federallyKnow how much of a "profit" pushes the boundaries to invite an investigationYou can be sued by the seller if you don’t do things correctlyYou are automatically at fault if an investigator or attorney or regulator gets involved.

Much less paperwork involved with a DSCR compared to a traditional mortgage if you're familiar with that process!

I’ve been involved in real estate investing for over 30 years, so if you ever have any questions or need guidance, feel free to reach out.