I would be very careful with this arrangement for your clients.

@Ramsey Doumani This is a great plan.

This is because REPS reclassifies rental losses as non-passive, allowing them to fully offset active income.

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.

If you’re leading it to a company be sure to have in your lease explicit information about who is responsible for what in terms of maintenance.

@Jorge Caceres  how big is this property?   

That is what we thought, but are being told we have to pay SS and medicare on this now even though it is "deferred." 

This agreement is just like a listing agreement when you go list a home, you are hiring the right person for the job, so this is the same type of contract, but this person is hired to find you the right home. 

I'm in Florida and self manage and can't find this type of form in the PRO member landlord forms package.

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