Maybe it is time to sell and trade up?

Here are the ways you can qualify for material participation per IRS publication 925: https://www.irs.gov/publications/p925#en_US_2023_publink1000...Material participation tests.You materially participated in a trade or business activity for a tax year if you satisfy any of the following tests.1.

Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.

This would add significant value since 4-5 unit properties trade for 50-60% over our current basis. 

I haven't seen a discussion about this on the forums yet, and figured I'd start the conversation.In case you missed the news this week, billions in trade came to a screeching halt at U.S.

Forecast every possibility that could go wrong....I'd consult with a very good attorney and an accountant who specializes in real estate investment as they normally have seen every scenario possible. 

S8 is a tool, nothing more and all an owner is doing is trading one set of challenges for another. 

Would love for you to come out and network with other local investors, meet some of the trades and see if you can make some connections to help you get started. 

If you are okay with the trade-off of paying 20-30% in management fees with less tax savings for a more passive investment, then management companies may be a good option for you.

What might help you for the next attempt is to read (BP's book written by yours truly--The Hands Off Investor), and network (join a community where investors discuss deals, trade advice and observations--coming soon will be Passive Pockets, an offshoot of BiggerPockets which recently acquired the popular passive investing group Left Field Investors).