However, proving material participation with a full-time job can be challenging, especially if tasks are outsourced, as the IRS scrutinizes such claims.

As the investor gains experience, they are not only able to more successfully foresee the “bumps” along the way, able to handle recessions, temporary negative cash flow, unforeseen capital expenditures without panicking, but will also recognize the opportunities necessary to turn a loss into a break even.

It comes down to how each county handles property tax valuation.To put it in generic terms - a title company & lender will base your initial mortgage payment on the property taxes of the previous owner.  

Challenges?

Hi Kris,It sounds like you’ve got a great property under contract with a solid entry price, and the only challenge is the interest rate of 7.125%.

I am in North Georgia and looking for my next investment property and I see how challenging it is to make the numbers work.

I'm enjoy the challenges of finding creative solutions through the numbers and negotiating what can work for both the buyer and seller. 

Rise to the soul challenge, Steve.

Unfortunately, the end of 2024 has brought a string of financial challenges for my family, and I’m feeling the pressure.Two weeks ago, I was laid off from my job.

One week into 2025 and the US housing market is facing considerable new challenges.