I'm an attorney for my day job, and came across a Federal Court order today which holds that "direct drop" voicemails, which I know are used by many real estate investors, violate the Telephone Consumer Protection Act (TCPA). 

Both federal and state laws apply.

A "convetional" loan (sometimes called a "conforming" loan) is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names). 

@Jamie O'Brien , as an investor of many types of investments I will say that this is one investment which should be Federally Outlawed.

To add to what I mentioned previously, and the comments above, there are several other approaches to this, aside from your sister becoming a real estate professional, and meet it's requirements, or having you employ her, and as a salaried employee, requires you to carry unemployment insurance, workman's comp, filing state, federal with holding tax etc. 

I do not believe that the current laws governing property management (in Ohio) promote the best interests of either property owners or tenants.

Still very landlord friendly as the civil one, once started, doesn’t have to stop for any reason, and so long as the local authorities move quick, you can get someone out pretty quick.From what some of the landlords in my area told me, government and law sides with landlords most times.

Federal taxes, you're allowed to deduct $25,000 of passive real estate losses against your active income eg w2 income that you actively participate. 

@Eric Richison, if your employer was the US Government you may have other options.

The state that I live in offers credits currently along with the federal credits for solar installation.