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.

If you are all going to be active in the business, then you can probably structure as a joint venture.

@Cody AndersonSetup a good contract with all the possibilities if someone wants to leave the venture.

We also wouldn't recommend trying to DIY manage.Most S8 tenants will be Class C and Class C properties are extremely difficult to manage remotely!

I also have no intention of investing in rental properties in the UK no more due to a lot of horror stories and potential new changes in laws, which is why I am very eager to explore the US rental market.I am not a US citizen, my partner is and it will be a joint venture.

Lakewood, OH area has been all the hype and it looks like the sales price is dropping the further East you venture towards W117th street.

@Yixiong Panin our opinion, it depends on the Property Class/Tenant.Class A: most people can DIY manage and learn what they need to know on the fly.Class B: A bit harder, takes more time and there's more risk with maintenance and tenants.Class C: should only be attempted by EXPERIENCED landlords!

@Brandon Weis when it comes to PMCs, you'll find two main camps here on BP:1) Hardcore DIY landlords that think & promote EVERYONE should DIY manage. - Many are okay and actually understand DIY PM is not for everyone, but there are some that only have negative comments about PMCs.2) Owners & PMCs that promote hiring professionals.- Some PMC members are only here to promote themselves and don't offer much of value.

How much will you spend on this venture?

You can find templates for joint venture agreements on BiggerPockets or other real estate investment websites.Next, consider joining local real estate meetups or online groups where you can network with other investors.