Dodd Frank covers personal loans, not commercial (all HML's are commercial in nature).

Also, you usually have to include your broker in every transaction, even if it’s just personal in nature.

Are they relying only on natural market appreciation?

Natural bridge caverns, downtown riverwalk, lots of parks around town, the zoo, Seaworld, going to New Braunfels, going to Fredericksburg.. there's a lot to explore!

However, you run a risk that a) you won't be able to sell a year later and b) the tenant will cause significant damage and c) mother nature will cause significant damage etc. 

Actually, a real estate professional still follows the active/passive nature of income. 

@Dave Godfrey hey I don’t really have any property under contract but I’m looking at rental house around Philly market so I wanted to establish relationships before hand and call to see how much what are the conditions of the loans and things of that nature.

But, looking at the natural resources that are close to Portland and the artificial urban growth boundary continue to keep it desirable on the list of places to reside.

They were all words you would naturally want to use in your LLC name to describe your rentals business...'

Naturally, the topic of real estate came up.