My concern with short term rentals is all down to the regulations.

I know acquisition time or commute time do not count for 500 hours material participation in rental properties but couldn’t find any regulation saying they don’t count for that 750 hours total RE involvement.

The tax code, regulations and related rulings have no holding period. 

Without question you need to check regulations in your area because most cities have some limitation on what you can do (even with your primary residence).

@Maricela Chavez there was a recent court victory for landlords regarding the cdc regulation.Im in California,so they have their own regulations about this.

@Chauncy Gray this is a legal question so you should really form a relationship with an attorney who mainly practices real estate and ask her/him this question.That said, I’m not aware of any such limitation existing at this time.I would recommend (as a layperson speaking generally, not someone giving legal advice), that folks who “wholesale” have a bond fide interest in purchasing, and ability to close on, every property that they sign a P&S contract on.My limited knowledge of other states is that wholesalers have gotten into trouble, and promoted legislation regulating their activities, when they put things under contract without the intention or ability to actually close on the properties.If that’s the case it’s not hard for someone to make the case that the “wholesaler” was really just connecting a buyer and seller and getting paid a commission - basically acting as an unlicensed real estate agent in violation of the laws regulating such activities.That’s also the reason that I avoid “co-wholesaling”, or deals where there are multiple wholesalers involved, like the plague.

Rent typically ranges from $500 - $1000 in the Greater Houston Texas and nearby cities.Pros:Better Cash Flow, Lower Vacancy, Potential for a rent increase if the property is well managed.Cos: Lack of 100% privacy by occupants, potential for housemate conlict, they may not maintain the house properly.Suggestion:Tenant Screening have to be thorough to avoid roommate conflict with one another, Have a standard Landlord Rules and Regulation to put all occupants in the best behaviour.Goodluck

Hi @Latierra Dewberry, to answer your question I have seen great success seeing other investors invest in other states - just be sure to double-check the county/state for certain taxes, regulations etc.

@Kumar GauravTitle Insurance Policy costs are regulated by the State...

Because the law/regulations on how min escrow amounts are determined, sometimes the calcs put it a bit higher or lower...