To have your activity qualify as material participation, you must meet one of the following tests:-Work more than 500 hours in the activity (a married couple can count the involvement of both spouses to meet this test)-Do substantially all the work in the activity-Work more than 100 hours in the activity, and no one else worked more than the taxpayer (including non-owners or employees)-The activity is a significant participation activity and your total time in all significant participation activities exceeds 500 hours-You materially participated in the activity in any five of the prior ten years-You materially participated in a personal service activity for any three prior years-Based on all facts and circumstances, you participate for more than 100 hours in the activity on a regular, continuous or substantial basis during the yearPractically speaking, this means you’re doing the work on your rental properties rather than hiring a property manager.

Same goes when acting as the buyer's agent.This is three separate and distinct business transactions. not one.

It just seems as though their timeline does not align with your timeline and personal circumstances. 

You can always buy more later".Over the years I have witnessed many investors getting caught.Some expected over night success by owning 1 property.Others over leveraged and didn't get the desired returns.And the unfortunate ones had unforeseen circumstances occur and had to sell.I am here to warn all of you that unless you are buying to hold long term (As in 5 years or more).You will probably LOOSE MONEY.Yes, you will LOOSE MONEY.It's as simple as that.Also, as much we would love to but the answer is "No".We won't be coming to your rescue anymore like we have done so over the years.Our message to all has always been clear but for whatever reason many have failed to hear it.Before you invest, make sure that you're finances are in great order as I have mentioned above.Make sure that you have conducted mind boggling due diligence on turnkey investing, the market, provider, their properties and the after service they offer.Only invest when you are 100% comfortable and confident in taking the next step.For all that invest with Ohio Cashflow and decide to sell 1-2 years later.Sure, we can help you.But at a cost.We will consider buying the property back from you for dirt cheap just like we would with any other distressed asset.Or we will help you with selling the property for a hefty fee.Why are we so harsh?

Some people also suggest forming LLCs to contain liability in certain circumstances. 

Originally posted by Tom Goans:... with Federal lien first in line should there be any.Tom Goans - Federal liens - specifically IRS - get in line just like any other lien; the main distinction of the IRS lien is that there is a 120 day right of redemption that the IRS gets.

With tax its worse because laws are constantly changing and rarely is specific advise worth giving since key facts and circumstances can change the advice and make it moot. 

A knowledgeable VA lender can provide guidance tailored to your unique circumstances.

With distinct A, B, and C areas, there aren't any truly bad neighborhoods for investment.

They share a personal account where only rental income is deposited, and I am listed as the beneficiary of their accounts at their bank.Although this is technically a personal account, we still like to refer to it as a "business" account to internally emphasize the necessity of maintaining a clear distinction between these funds and other personal accounts.