Or is there another way to structure the deal so that there is minimal delay in the event of a default to have the property transferred back to you (i.e. additional clause in the performance deed or some other contract, etc.)?

Unsuccessful Property Search: Hours spent on unsuccessful property searches, where no purchase is made, do not qualify.On-Call Periods: Instances where you are on-call but do not actively perform work do not count towards material participation.Meeting Requirements:Maintain Detailed Records: Keep accurate time logs and records documenting your involvement in material participation activities, supported by evidence such as emails and calendar appointments.Seek Professional Guidance: Collaborate with a qualified tax professional to ensure compliance with IRS regulations and to optimize your material participation strategy.I hope this high-level overview gives you insight into what activities matter and ones that do not.

This gives additional reassurance that this specific 'fringe' region between Waldo and Marlborough is a sound area to invest IMO. particularly in the long term.Main issue with the Quads is price: they started at $550 asking in September of last year.

Thanks for the insights 

In my firm, we underwrite the Sponsor as a company in addition to their individual offerings.

Hi Jacob, I just wanted to give some additional clarification quickly for any who may be looking at this later for reference.

That way on a 75-80% cashout you can recoup your cost, and possibly add additional cash to your operating account, to scale your progress toward building a portfolio.It's not going to happen overnight but with consistent investments, each additional property should add equity, cash, and monthly cash flow to your portfolio, causing a compounding effect to allow you to scale.Let me know if you have any further questions, but this seems like a great place for you to start.

It’s an especially satisfying strategy for leveraging up from a 1031 where the gains made in the first property can put you immediately in a good spot to benefit from pay down with a larger loan with little to no additional expense.One of the 4 pillars of real estate wealth building, but probably won’t support too much alone.

What I mean here is that many people deduct their automobile expense in Line 9 – Car and Truck Expenses…..and you might be correct that itemizing your automobile deductions might allow you to get a HIGHER deduction when using this line….but your lender cannot add it back to your income!

Hi Shirley, greetings from Houston, Texas.I am also new to real estate investing and excited to see what the future brings for us.I have not read that book, but i will add it to my list.