I was told that you cannot be an "active participant" in the property.

I'm a newer participant on the forums and I've been very impressed with the talent on the sites.

@Bill Brandt @Wilson Hunter @Conner Olsen  STR are active investments like a hotel as long as you materially participate in the management of them.

You have to remember that these folks are putting a chunk of cash in your hands and relinquishing control; they're looking for tangible evidence that you believe you can deliver.Something else that is very common to encourage investor participation is what's called a preferred return.

I will have to dig that up.As per your reference to the IRS doc which, of the three, is the only one that matters, note the first word in the paragraph:"Generally, if permitted by the plan, a participant may borrow up to 50% of his or her vested account balance up to a maximum of $50,000.

You need to consider to what extent the parent may be participating in the obligation.

You don't want to become an unwitting participant of a money laundering scheme.

I actually like the idea that they're getting the data from the courts and not from participating landlords.

Appreciate you participating in the thread... got some great feedback.

@Brit Foshee There are three levels of participation in the IRS's eyes.The first level of participation is simply "passive" participation.