For REP status federally, you must meet two requirements: work 750+ hours in real estate activities and spend more than 50% of your total working hours on these activities during the tax year.

It gives you a total livability score as well. https://www.areavibes.com/

I think this totally depends on the investor and how many projects they are doing in a given year.

It’s totally normal to feel overwhelmed when starting out, but it’s great that you’ve been saving and reading up on investing.

But I agree totally that it is an incredibly powerful vehicle to build wealth without having to put very much money down. 

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 4-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

Here is a great resource. https://www.areavibes.com/They give you a total livability score and you can type any address in 

That’s great advice Taz, I’m currently working on saving enough money to get started, house hacking is hard for me at the moment because I just bought a house 2 years ago, I would have to sell my house(which is in a great neighborhood great location) and use that money to fund the duplex which isn’t totally out of the question, I would like to keep the house if possible but also would like to get real estate investing more.

I can get $7000 rental income per month total.

So if we go w/ the $700K purchase price of the new rental (paid in cash from the proceeds), that leaves them w/ $300K to pay capital gain on, @15%, totaling $45K.