Material Participation in a Real Estate Trade or Business.This is pretty straightforward but you must materially participate in a real property trade or business, such as development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage.2.

Hector did you also check out https://dealcheck.io/ free version?

Check out REI Central, CHS Circle, and the Tri-County Investors Association.

The PM has vetted this tenant and says their credit and current W2/Job does check out (over 700 scores and W2 income to support their story of being an engineer). 

Does anybody have any advice on this subject, anything I should watch out for, is a lawyer necessary, does everyone have to sign the deed, or is it a straightforward process I can do myself?

Given the low purchase price, the financing was straightforward and quick, allowing us to close on the same day we found the deal and sell it immediately for a profit.

Check out spots like New Jersey (especially parts of Newark and Jersey City), Westchester, and even upstate in places like Poughkeepsie or Newburgh.

I don't want to do a traditional cash out refinance because the house would no longer cash flow and I don't have the funds to buy him out straightforward.

Just avoid going cheap and check out the FB marketplace as well.2) Separate them as much as possible and have blatantly outlined to the LTR and STR guests of the living situation.

@Chris McClellan check out some of the great things happening in Detroit this year, one of the best cashflowing and appreciating cities in the US!