Of course, many investors bend/break this rule, but that's another risk.2) If your bid wins the foreclosure auction, you then have to deal with getting rid of any occupants - who may steal/damage everything they can in retaliation:(3) You MUST have a great crew on the ground that can minimize surprises - not easy to do on your first deal.Regardless if you buy a foreclosure or other property, read our copy & paste advice below:-----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

.✅ An agreement must be in place between the buyer and buyer’s agent before any properties can be toured.It should be noted these rules are in line with the NAR settlement and is an MLS participation requirement, not state law

Garland has some pretty onerous rules for STRs and even requires a license and inspections at every lease turnover for LTRs which has put me off investing in the Garland/Mesquite market period.https://www.garlandtx.gov/DocumentCenter/View/15034/STR-Info...

Of course these are West coast rules  CA OR WA.

This means meeting the 750-hour rule, the 50% rule, and the material participation rule of 500 hours.

Understand the 50% rule.  

Looking at the big January 1st rule changes?

@Ginger Vaadi I would agree the 50% rule probably more accurate over time.

Your bio says "Denver" but that could mean a lot of things and there are significantly different rules on renting out your property whether you're in Arvada, Westminster, Aurora, Denver proper, etc, etc.

Quote from @Christopher Berra: Quote from @Kevin Perez: If you want any advice feel free to reach out all of my rentals are S8 in several different states - every state has their own rules and guidelines but reach out if you are still interested What has your experience with Section 8?