Then he would have a vested interest in the property as well and lowering your risk. 

Here’s a great article that walks you through how to qualify for REPS status.https://www.aicpa.org/resources/article/tax-rules-for-real-estate-professionalsEntity Structure ComparisonBe sure to consult with a CPA or tax attorney as the entity structure you select can have a significant tax impact.

Over time of that LL making mistakes he is gaining much knowledge and hopefully it turns to wisdom and eventually he is helping others.  

@Gene Guarino Is there any knowledge you can share on how to find operators looking to expand their business? 

I am debating selling one but it is Owen county @James WilcoxI can inquire with my tax team but wanted to hear from the experts here with any advice as well.

Developing a relationship and understanding the skillset your agent will bring to the table is vital upfront and puts even more responsibility on the buyer to have selected an agent that will get them to the finish line. 

I find this level of underwriting lacking with many flippers as well, failing to properly consider the holding costs, insurance costs, taxes, etc.

Keeping it as simple as I can for the first one.For sure, hope all goes well for you!

Tenant selection is critical though.  

With switching to an entirely different field, it would probably be a good idea to get a little bit of experience in the day to day operations of property management, as well as familiarizing yourself with some of the Colorado fair housing laws, minimum property requirements, etc.