As always, your tax professional should help you navigate these rules and apply them to your specific circumstances as with all tax law, there are caveats and nuances to everything which need to be examined!

A property that needs little or no renovations would be ideal for our first property.I am wondering if you guys have any more insight into specific areas that are good to invest in?

Overall, here are my thoughts: When it comes to a realtor: - Someone that at least owns rental properties- Treat a showing as an interview - sign a short term buyer / property specific agency agreement with them.

@Jessica Swanson, I can't speak to Texas specifically.

Be sure to attend your local REI meetups to build up a strong network and check out the forum topics specific to your goals.

We're a brokerage that deals specifically with investors.We hold monthly REI meet ups all throughout massachusetts where investors, vendors, attorneys, lendors, agents, etc come to learn and network.Our Worcester team is hosting a meet up at Bay State Brewery in Worcester this wednesday from 6:30-8:30p. you should stop by!

So far so good, will see how the pandemic affects the overall business plan....you can DM if you have specific questions....

Why will likely determine how because if you are looking for cashflow vs. appreciation vs. quick capitalHow could it be househacking, brrrr, flip, long term -> You mentioned BRRRR, which is an awesome strategy but will only work in specific sectors of Chicagoland. finding the perfect brrrr in the current environment is extremely tough!

Probably need to seek a lawyer and have them write up an agreement between all of you to set specific rules on this investment group.

The IRS requires the hours to be specifically in real estate trades or businesses, which typically means activities directly related to owning, developing, operating, or managing real estate properties.IRS Publication 925 outlines what counts as real estate trade or business activities, like development, construction, acquisition, management, leasing, and rental operations.