Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

Builders, house flippers, brokers, etc.Unfortunately, banking and finance services and certain architect and engineering services don't qualify.

To qualify for material participation, you generally need to meet either the 500-hour or 100-hour rule.

Unfortunately you will have to qualify using market rents, if you want the better rate.

But Banks only fund the very well qualified generally no way a beginner is getting bank financing unless your basically borrowing your own money. 5.

Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property.

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.

I spoke with two lenders who they suggested and the lender I normally work with and I could not qualify with my primary home and rentals.

In 2017, we want to try to qualify my husband as a Real Estate Professional.

Or is qualification your main preference 1-4 unit fha conventional loans will qualify off DEBT to INCOME or DTI while commercial portfolio loans will qualify off DSCR or debt coverage service ratio (this assume you’re not going to live there if you’re going to a credit union).So you asked a loaded questioned but I gave you some questions/answers to think about if you could provide more information perhaps more commentary can be added further.