You was a little fast on the trigger to go scorch earth.

Thank you so much @Greg O'Brien, I just bookmarked this thread, I stayed up until 2am last night trying to find answers to this, confused by different professional opinions and IRS publications.I'm trying to use STRs (rented out 7 days or less with no substantial services provided in which I materially participate) to reduce my W2 liabilities and my biggest concern was if doing this will trigger Self Employment taxes.If I understood correctly, in this situation I can use depreciation losses as active against other active income (which is what I want).

 That felt fee service IS an agent.Flat fee services often let you put it the agent remarks whatever you want and have little compliance checking.  

Hope that’s kosher…You might also want to consider moving your notes to a servicer, thus you'll be in compliance with all applicable statutes and other crazy regulations spun up by Liz Warren. 

Obviously you'll want to check the math on all of this before pulling the trigger. 

Common expenses include:- Attorney Fees: Legal assistance for reviewing contracts and ensuring compliance can vary based on the complexity of your deal.- Title Insurance: Protects against potential disputes over property ownership.- Appraisal Fees: Necessary to determine the property’s market value.- Closing Costs: This can include various fees related to finalizing the loan, such as recording fees and settlement costs.Inspection Fees: If required, this ensures the property is in good condition before purchase.It’s a good idea to discuss these potential costs with your lender upfront to get a clearer picture of what to expect.

When a property is sold it triggers an inspection to get the property up to code.

If you receive any boot (like cash or non-like-kind property), then some of that recapture could be triggered and taxed.

If both the mortgage and title are in your and your wife's names, setting up a multi-member LLC with both of you as members might help avoid triggering a property tax reassessment (some counties do that) since it shows continuity in ownership.

Some questions I ask myself before pulling the trigger:1) In 1 year, would I make at least double of what I invested into this- or any- coaching program?