While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Both options necessitate careful legal and financial planning due to their complexities.Renting out the property at a market rate of about $3,500 per month offers a different set of financial benefits.

Also, I'm sure that someone can correct me if I'm wrong, but I'm relatively certain that this necessitates you to work with cash or private money.

Hello everyone-We have a Single Family we are renting out in a very rural part of upstate NY.We had a septic main line go out and had to have a contractor repair it in between snow storms in 8 degree weather.This repair necessitated part of the driveway being dug up .

@Jonathan CamachoYour circumstance necessitates various considerations, and the decision to buy your primary house or invest in real estate is entirely personal, based on your financial goals, risk tolerance, and lifestyle preferences.

By carefully considering these factors, you can make informed decisions that will contribute to the long-term success and profitability of your rental property investment.Identifying a high-quality rental property necessitates a thorough and holistic approach that takes into consideration a wide range of factors.

Begin Small.Keep in mind that out-of-state investing necessitates meticulous preparation and due diligence.

Here are some thoughts and advice on your questions:Pulling Equity for Repairs and Down PaymentNeighborhood ConsiderationsNetworkingFinancingResearch and Due DiligenceProperty ManagementTake note that real estate investment necessitates thorough preparation and research.

It also has expensive transactions which necessitates long hold times (and helps prevent panic selling but leaves the equity relatively inaccessible).

From what I understand, that process may necessitate paying off the full mortgage (depending on the loan clauses), and/or a loan refinance/restructure. 2) If an LLC is not the best option, should we file for a DBA and acquire and EIN to open a business bank account and keep business finances separate?