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.

Exactly but the Daly case was able to show that FRL wasnt even taking place as First National’s consideration in the note had no origin.

Hello everyone.I plan on househacking and, since multi-family is hard to come by, I have heard some people buy a SFH and live in the basement while renting out the rest of the home and renovate the basement in the process.To me it seems like it wouldn't really impact rent amounts too much unless I added bedrooms and I feel like the deal would already have to cash flow because of that I know this can be pretty nuanced but I am open to everyone's thoughts.Thank you!

If it's an opportunity - regardless of the size of the property - it's an opportunity.Start kicking the tires...the market will tell you if you can do what you're thinking about doing.Best... we have indeed started looking around with the help of a realtor and got pre approved. we also have a basic cash flow calculator and research done on the areas we want to invest in.We came to our senses when the almost all calculations were showing negative cash flow due to higher interest rates and property prices.

I want to purchase a good quality car, near new (not brand new), so that I do not have to worry about buying another one for at least the duration of time I plan on aggressively investing to achieve about 12k a month in cash flow, over the next 12 years.

Hi BP,What is the typical arrangement for partnerships when one partner does not have capital to invest but they have all the other elements:Partner 1:Owner-occupied,  Great credit, No capitalPartner 2: Non-owner occupied, Capital , Great credit Does partner 1 get a percentage of equity plus percentage of cash flow? 

In all fairness, I did ask for a lot of quotes but did not close on properties since they were not cash flowing.1 Can some one let me know what should one be looking for in an insurance?

Yes, Ohio something Flow... sounds leaky to me.. ;)

Today it is a cash flowing short and medium term rental!

I have been investing in residential real estate since 2012 first in California and then in Florida.My cash flow has been slowly and regularly increasing during the years thanks to the cap on property tax increase in these 2 States (IE proposition 13 in CA and 10% cap on investment properties in FL).Recently I started to analyze deals in Texas and Indiana for my next rental property.Reading some posts on this platform and talking to some investors, I quickly realized that, during the years, all the rent increases will be eaten up by the regular property tax reassessments.I think many investors often underestimate this issue.Am I missing anything?