The second piece is whether or not you pass the Material Participation Tests found in IRC 469 and the third piece is whether your participation rises to the level of Substantial Services (think hotel, B&B).4) My CPA Says I can't deduct a loss that was generated! 

@Jamie O'Connell As a NY landlord, sec gangstas is all i accept these days.

There is only a small fee to accept the offer and make the deposit into a checking account.

There are seven tests, however the most relevant tests for STR investors include:Perform substantially all the work related to the activity.Participate over 500 hours during the tax year.Participate over 100 hours during the tax year and no one else participated more.If your property meets one of the exceptions above AND you meet one of the above tests, you can qualify to treat your rental activity as non-passive.

The world is an incredible place full of opportunity, but you need to understand how to navigate it and what you are comfortable accepting and rejecting. 

By accepting this payment plan for so long you may have created a situation where it is considered an agreement between you and the tenant to pay this way.

As a fellow Northerner, I tend to buy in the Southern half of the US for 2 reasons:1) you get much higher year-round occupancy rates in the South & it’s simply tough to earn a good ROI in the North if your place sits vacant for a big chunk of the year2) Culturally, the Southern half of the US seems to be a lot more accepting of STRs regulation-wise.

Tenants told me seller had tried to sell to investors before but after meth test came back positive they were going to drop the price significantly. 

Original list price: $420k Original offer accepted at $350k Closed at $290k after negotiations Rehab: $20k What made you interested in investing in this type of deal?

Hey everyone,So I applied to test for a GC license in California, but was short on experience.