Long distance landlording is a different type of investing.We've had long threads about "cash flow not being king..." 

So my current buy box for fix and flips:Location: Richmond, VAProperty Type: Single familyPurchase Price Range: 50k - 200k Est Net Profit: 10-20kRenovation Type: Cosmetic or alittle more.Holding Period: 6 months or less.I would love to have a call and get any advice on how to make it more flexible or robust when presenting to agents or referrals. 

Could readily be up to 40% in taxes depending on the circumstances.Assuming this project was gone into with the intention of flipping it (that is the wording you used at least), it is self-employment type income subject to ordinary income tax rates and self employment tax. 

Hi,I'm looking to invest in real estate out of state, what type of investment would be best for someone looking to build a real estate portfolio overtime, out of state?

They do not serve the property owner at all.

What made you interested in investing in this type of deal?

I tend to agree with Peyton that it is really good to have an idea on the type of financing you are wanting to do (Hard Money, House hack, Conventional, etc.) and get an idea on the folks to deal with.

If so, it might be very hard to do any type of cash out refinance for a while. 

The reason I suggest only one accountant, and ideally the one specialized in your "area of investing" Is because they will be the most up-to-date and informed on policy around that area, and best suited to serve you since they are doing it themselves. 

I think the reason why people view it as a loophole is that it is taking the material participation test and applying it to a more "passive" type of business. 100% you are correct, nothing shady or ill-intended going on here