this is only a good idea if you have reason to believe that the area will be appreciating quickly, which is called speculation and akin to gambling not investing. me personally, I would rather put my money on black than bank on market appreciation. negative cash flow rentals are a time suck and money suck.

Keep records and ask for re-verification as per the guidelines on net worth and income.Thanks for letting me jump in here.

Best way is to consult with a tax advisor to ensure compliance with IRS guidelines.

But overall, with a young family, I would be cautious about gambling the whole farm (Brokerage account) on RE investments.

Glad I didn't follow the guideline that book quoted above. 

The gamble is that the outcome hinges upon the courts discretion and it’s rare to see specific performance unless buyer can demonstrate that monetary damages aren’t enough to make them whole.

Quote from @Eman Tai: @Sean O'Keefe could I get a copy of the log book that follows the IRS guidelines? 

Understanding the IRS disaster relief provisions is crucial for residents seeking financial recovery.Under IRS guidelines, individuals and businesses in areas designated as federally declared disaster zones by FEMA may qualify for special tax relief.

(e.g. peace w/ Israel, gambling legalization, etc.)

However, there are some general guidelines and strategies to help you scale up to 5, 10, or even 20 properties.