REP status for running STR's

[Pam Smith]

Hi all-

I currently have a full-time "day" job but would love own/manage STRs full-time. Just curious, anyone with REP (real-estate professional) status on here, how many STRs did you need to get to in order to qualify for this?

Thanks! 

[Ryan Moyer]

Originally posted by @Pam Smith:

Thanks all for the great responses! We have 1 STR right now that went live in mid-May in a very, seasonal location. We did $72k in revenue from June-October without any reviews to begin and after all expenses (including start-up costs and 12-mos of mortgage) we profited about 15k after 100k down. We're looking in the same area as we have a great team around us. My husband has a great job that can allow us to get a few more properties without taking into consideration the revenue from these properties. I also make a great living with my full-time job but really enjoy this new venture. Would love REP status to help offset my husband's W2 if I quit my job.

Your full time job is going to be the hurdle here.  If you don't have that then REP is something like the majority of your work and 750+ total hrs/yr I believe.

I'm not a CPA, so could definitely be wrong on that.  But if you have a full-time job in another industry, it's extremely unlikely you'll qualify as a REP.