H1B Visa Holder Doing Real Estate Investment

Foreigners Buying in the USA

H1B Visa Holder Doing Real Estate Investment

Investor · Little Rock, AR · Member since 2016 · 121 posts · 37 votes

I'm currently a H1B visa (Temporary Worker) holder working full time in the states, trying to start my real estate investment. My current employer is sponsoring my green card application, but the whole process will take another 4 years to complete. According to immigration law, I'm not authorized to work for unsponsored employer currently, which includes myself in this case if I start my business on the side. Also to my knowledge, all my income outside of sponsored job has to be passive income. I can also form a LLC but can't operate or engage in any business activity. I'm wondering anyone had same experience before, and know how to get around this limitation and do real estate investment. My goal is to do rentals since that's passive income nature. But I'm pretty sure as I do more deals, there will be wholesale and flipping come up every now and then. Eventually when I am at final stage of green card application (I-485 Adjustment of Status), the USCIS will look at my past 3 years tax return. So I don't want to raise suspicion, which could lead them to deny my application. Help me out here fellow BG investors. Thank you!

259 views

Most Popular Reply

Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 905 votes

Andrew Y. - not a lawyer but I know someone in a similar position who acted as a private money lender (silent partner) on a rehab to generate passive income. You could also look into the many turnkey providers to sites like Realtyshares, Honemestors, etc who will provide you with a K1 for passive income.

See this reply in the discussion

38 Replies

Jump to latestLatest

Sort by

Santosh Nalu
Member since 2020 · 3 posts · 0 votes
6y
I am in the same boat. I have in processing of purchasing my first storage facility. Toying if I really need an LLC or partner with a citizen and start a new LLC? anyhow I will have part-time manager managing the storage facility
0 Reply
Shalin Shah
Jersey City · Member since 2019 · 7 posts · 1 vote
6y
I am in the same boat as yourself, was wondering if it possible to do a BRRRR method on H1B? As eventually it generates passive income. Any feedback appreciated!
0 Reply
Naeema R.
Member since 2020 · 3 posts · 3 votes
5y
I'm on a TN visa and live in the US and am interested in purchasing a couple turnkey managed rentals to generate passive income.
My questions are around taxation - i have read that if the rental is not associated with a us trade or business, then the gross income from the rental is taxed at 30%, however if associated with a us trade or business, then graduated rates apply, as well as the net is taxed and not the gross. I am not clear on what would need to happen/what i would have to do to end up in the latter situation.
if anyone can shed some light on this i'd appreciate it!
0 Reply
Vaishnavi Thaker
Member since 2021 · 32 posts · 7 votes
5y
Hi @Andrew Yu, I have the same question. DId you get advice from your immigration lawyer or get a solution to the question? I would like to know more!
Thanks!
1 Reply
Vaishnavi Thaker
Member since 2021 · 32 posts · 7 votes
5y
Hi @Andrew Yu, I have the same question. DId you get advice from your immigration lawyer or get a solution to the question? I would like to know more!

Thanks!
0 Reply
Vaishnavi Thaker
Member since 2021 · 32 posts · 7 votes
5y
Hi @Andrew Y., I have the same question. DId you get advice from your immigration lawyer or get a solution to the question? I would like to know more!

Thanks!
0 Reply
Andrew Yu
OP
Investor · Little Rock, AR · Member since 2016 · 121 posts · 37 votes
4y
@Santosh Nalu @Shalin Shah @Naeema R. @Vaishnavi Thaker
Fast forward... I quit my software engineer job last June. Became a full time real estate investor, primarily focusing on wholesaling, doing 5 to 10 deals per month. Own a few long term rentals. Also dabbling in Short Term Rental a little, about to acquire my 2nd STR property.
For people that are on H1B status, I would advise you to start off by doing HOUSE HACKING. Either buy a 2-4 plexes, live in one side and rent out the other side(s) to your friends. Or buy a big SFR, maybe 1600 - 2400 sqft, with at least 3 bedrooms, rent out each room.
After that, you can work on BUY & HOLD. The great thing about this is you get to enjoy the cash flow from your asset, but also enjoy its appreciation over years. And this is not considered Active Income by IRS. You can pretty much buy as many long term rentals as you want. Make sure you have hire Property Manager to manage them for you. That way you're 100% hand-off, only collect checks.
Stay away from WHOLESALING, FIX & FLIP, and SHORT TERM RENTALS. These are all considered Active Income, unless you're just a passive investor in the deal that fronts the money without any other work involved. Hope this helps!
*DISCLAIMER: I'm not a CPA or attorney.
6 Reply
Kheng Joe Lau
Investor · Minnesota, out of state · Member since 2022 · 5 posts · 1 vote
4y
Quote from @Andrew Yu:

@Santosh Nalu @Shalin Shah @Naeema R. @Vaishnavi Thaker
Fast forward... I quit my software engineer job last June. Became a full time real estate investor, primarily focusing on wholesaling, doing 5 to 10 deals per month. Own a few long term rentals. Also dabbling in Short Term Rental a little, about to acquire my 2nd STR property.
For people that are on H1B status, I would advise you to start off by doing HOUSE HACKING. Either buy a 2-4 plexes, live in one side and rent out the other side(s) to your friends. Or buy a big SFR, maybe 1600 - 2400 sqft, with at least 3 bedrooms, rent out each room.
After that, you can work on BUY & HOLD. The great thing about this is you get to enjoy the cash flow from your asset, but also enjoy its appreciation over years. And this is not considered Active Income by IRS. You can pretty much buy as many long term rentals as you want. Make sure you have hire Property Manager to manage them for you. That way you're 100% hand-off, only collect checks.
Stay away from WHOLESALING, FIX & FLIP, and SHORT TERM RENTALS. These are all considered Active Income, unless you're just a passive investor in the deal that fronts the money without any other work involved. Hope this helps!
*DISCLAIMER: I'm not a CPA or attorney.
Congratulations your your success!
I am in the same boat. 3 more years for a green card. I was wondering about STR and was thinking about how much tax benefit I could gain by bonus depreciation and offset my W2 income. Then I realized the 100 hours material participation rule could be construed as active income and jeopardize my green card chance. Reading your post make me more confident in staying away from STR at the momeent.
1 Reply
Wenyu Zhang
Rental Property Investor · Orlando, FL · Member since 2022 · 20 posts · 12 votes
4y
Quote from @Andrew Yu:

@Santosh Nalu @Shalin Shah @Naeema R. @Vaishnavi Thaker
Fast forward... I quit my software engineer job last June. Became a full time real estate investor, primarily focusing on wholesaling, doing 5 to 10 deals per month. Own a few long term rentals. Also dabbling in Short Term Rental a little, about to acquire my 2nd STR property.
For people that are on H1B status, I would advise you to start off by doing HOUSE HACKING. Either buy a 2-4 plexes, live in one side and rent out the other side(s) to your friends. Or buy a big SFR, maybe 1600 - 2400 sqft, with at least 3 bedrooms, rent out each room.
After that, you can work on BUY & HOLD. The great thing about this is you get to enjoy the cash flow from your asset, but also enjoy its appreciation over years. And this is not considered Active Income by IRS. You can pretty much buy as many long term rentals as you want. Make sure you have hire Property Manager to manage them for you. That way you're 100% hand-off, only collect checks.
Stay away from WHOLESALING, FIX & FLIP, and SHORT TERM RENTALS. These are all considered Active Income, unless you're just a passive investor in the deal that fronts the money without any other work involved. Hope this helps!
*DISCLAIMER: I'm not a CPA or attorney.

Congrats! That's one more step closer to financial freedom lol. I'm about to on H1B visa soon and looking to invest a commercial retail property. Do you know if there are any good banks to work with? And how much down usually required? Thanks.
0 Reply
Andrew Yu
OP
Investor · Little Rock, AR · Member since 2016 · 121 posts · 37 votes
2y
Quote from @Wenyu Zhang:

Quote from @Andrew Yu:

@Santosh Nalu @Shalin Shah @Naeema R. @Vaishnavi Thaker
Fast forward... I quit my software engineer job last June. Became a full time real estate investor, primarily focusing on wholesaling, doing 5 to 10 deals per month. Own a few long term rentals. Also dabbling in Short Term Rental a little, about to acquire my 2nd STR property.
For people that are on H1B status, I would advise you to start off by doing HOUSE HACKING. Either buy a 2-4 plexes, live in one side and rent out the other side(s) to your friends. Or buy a big SFR, maybe 1600 - 2400 sqft, with at least 3 bedrooms, rent out each room.
After that, you can work on BUY & HOLD. The great thing about this is you get to enjoy the cash flow from your asset, but also enjoy its appreciation over years. And this is not considered Active Income by IRS. You can pretty much buy as many long term rentals as you want. Make sure you have hire Property Manager to manage them for you. That way you're 100% hand-off, only collect checks.
Stay away from WHOLESALING, FIX & FLIP, and SHORT TERM RENTALS. These are all considered Active Income, unless you're just a passive investor in the deal that fronts the money without any other work involved. Hope this helps!
*DISCLAIMER: I'm not a CPA or attorney.

Congrats! That's one more step closer to financial freedom lol. I'm about to on H1B visa soon and looking to invest a commercial retail property. Do you know if there are any good banks to work with? And how much down usually required? Thanks.
Try to find a local bank. They are usually best to work with. You can expect 20-30% down usually for an investment property.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.

Log In Join for Free