If these are simply garden variety rental properties I would think you would be in the Passive Activity element of the applicable guidance, but see below for the definition of categories and the applicable interest tracing treatment accorded to each.https://www.law.cornell.edu/cfr/text/26/1.163-8T

However, since I can analyze every property in the market, and rank them by their returns, it puts properties on my radar that I would have normally overlooked.  

@TJ WalkerWhat was the source and criteria that ranked Memphis #1?

I would imagine BP does have a heavy element of "survivorship bias" when it comes to people posting about successful projects, buying right, pulling all of their money out post-rehab, etc. 

The regularity of activities and transactions and the production of income are important elements.

ThanksJoe, The following elements must be proved with respect to an unit before it is considered placed in service:1) Readiness2) Availability 3) Capability to perform its intended functionDepreciation starts when you placed the property in service.

Days later, the cops came back to look for prints on the meter - none found, but I was impressed by the effort shown by the PD, as this was an exterior item, exposed to the elements, and, from my recollection, has a porous surface.I no longer waited for the project manager to get an alarm after this hit - I ordered a system myself to come to his house for him to install it - should have been simple.My partner and I again suggested we take it off the market.

I got into it because I knew some people who had done well with vacation rentals and I like hospitality elements like talking to guests and I take joy in serving their needs.

Is having an entity a necessary element of investing—or only in certain situations such as owning free and clear properties?

More than likely a person with a tattoo on their face won't pass at least one element of the background check, but it's foolish to even think of denying someone with say a tattoo on their bicep or ankle (unless the nature of the tattoo screams don't rent to me).