.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

Lot had the dry stream water flow going thru the middle.  

@Karl Kauper with a SF you can require the tenant to take care of lawn and snow, but they might not be up to your standards. 

It’s a good idea to confirm you have a path to record title in a way that’s financeable, even though this isn’t a standard fee-simple sale.The big question is whether it’s reasonable to pay a market-rate price when you’re not actually scooping up the land.

Wow yes I feel like I'm hearing first-hand how wrong it could go, but I have a few questions and concerns if my standards will follow suit of the unlucky investors:-For sure I would want to work with Class A or B rentals (I had a property 5 min from my home and the tenant was HORRIBLE, so a reliable renter is CRUCIAL), but not sure if my price range would find such a tenant.

However I have had to replace some major appliances recently which had put my in the defecate and added to my motivation to sell (Hot water heater, two refrigerates and a washer/dryer).

The interior will need to be repaired and repainted.I've done several 1900 - 1920's and while they usually have good bones, the electrical can be underpowered for today's needs, and the water lines can be corroded galvanized or even lead.

In one of the 3 fundamental human needs (food, water, shelter).

Also, I don't know if it would be worth it from a liability perspective either, but would advise to chat with an insurance pro/legal pro.When purchasing a primary residence, conventional loan guidelines will require you to take down the property in your personal name.When it comes to taxes, you'll likely be able to take the standard deduction AND itemize Interest, Taxes, Insurance, Depreciation, and expenses prorated based off the rented portion of the property when reporting the 1040 along with W2 income.

You can lead a horse to water but you can't make the horse learn math.