Do you have a good real estate attorney to keep things professional between you?

Sure, you can classify yourself as a real estate professional or setup a property management component and pay yourself a salary that could convert that passive income to earned income, but it generally does not make sound financial sense to do so.The gig work could potentially support a Solo 401k.  

@Shane M.keep things simple: just use your IRA as private lender to your friend.

Mark, welcome aboard.BP is a great conduit for RE investment advice and insights.My company is both a private buyer and private lender on lower ARV $ properties throughout the U.S. 

It can connect you with many different professionals from around the United States and around the world.

I'm not a financial professional, so seek qualified, competent advice.If the property is in your name, the LLC / business entity structure will not protect you against lawsuits, etc.If that (mortgage deduction) is your criterion, however, you may want to re-examine your priorities.

If you have been at it long enough to have all the returns and financials the bank needs, but still have no luck securing the funds, Hard, Private or Asset Based loans are going to be your best bet.  

Although my company is based in CA and IL, we are both buyers and private lenders on lower $ ARV SFR properties throughout the U.S.Best of luck and continued success.

Young professional eager to learn more about the Real Estate Investing scene.

I recently attended a seminar talking about reverse wholesaling, getting money from private money lenders etc.