It could impact your home equity and financial security.For a safer and more specialized alternative, consider a Fix & Flip loan. 

I imagine other people might have good alternative suggestions too. 

I'm just hoping someone with actual knowledge of it can provide some information that offers an alternate explanation.

Hey @Jordan Northrup check out Buildium, it may be a decent alternative and fit the bill for what you're looking for.

Establish an emergency fund and target stable long-term rentals or short-term rentals in markets you understand.House hacking or private lending can offer alternative entry points depending on your risk tolerance and hands-on involvement.

Wagner - you have offered alternative on the 2 properties I had with you which i waited for 2 years and now it is almost another year and there has been no updates from your side or any help to expedite.

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.

Each individual owner can have their own Deferred Sales Trust:, the assets of which can be managed to each taxpayer’s own individual risk tolerance and preferences. 4) A 1031 Exchange alternative or rescue- Unlike a 1031 Exchange, the proceeds from the sale do not have to be invested in “like-kind” property in a very short timeframe to achieve tax deferral.

I only allow tenants to pay on the 1st of the month but I would consider alternate payment schedules dependent on the situation and tenant if they asked.

Most alternative investments work just like pretty much all RE niches work when deployed effectively.