In fact, numerous Tax Court cases have found in favor of the IRS when a taxpayer can’t document enough hours spent providing personal services to their rental real estate activities.Generally, material participation is determined separately for each rental property.

BP provides alot of free information & there a litany of good books to read on the subject.

I'm not trying to get in over my head on a project that will require more then I have to give (in time and knowledge), however my job does provide me some flexibility.

Annual increases in keeping with HUD's fair market rents build in a stable increase in revenue.Regular inspections from the local agency provides us with an excuse to get into the units to check for maintenance issues that often go unreported and cause more damage.We love the model.

You will need to install outlets, switches, and lighting fixtures as needed,Plumbing: You will almost certainly need to connect all drains to the sewer and bring in water lines.Windows and doors: To provide natural light and ventilation, you will need to add windows and doors to the garage.

However, like @Ellis San Jose mentioned above, you will command more $$$ for your property if it is delivered vacant (unless you are getting top market rent for that unit).If you do sell with tenants, be prepared when the prospective buyer requests rent rolls, estoppel certificates, rent history, existing leases, rent due dates, security deposits, and any other written or verbal agreements.

As such Schedule E does not even provide a line for wages/compensation (employees), the implication is a passive activity cannot have employees.

Whether to jump in now depends not only on interest rates but several factors including where you are financially, do you think values will increase or decrease over the next 2-5 years and will the investment provide you with a better return than investing the $ somewhere else.?

House hacking in San Diego provides opportunities for equity growth, increased rental income, and hands-on property management experience.

Each person can provide their own definition of freedom.