All Forum Posts by: Edgar Estrada

@Josh Lewer really appreciate you taking the time to share such a thorough breakdown and even pulling in excerpts from the IRS Audit Technique Guide — that’s a wealth of information and I’m sure it’s helpful for anyone following along in this thread.

Just to clarify the lens of my original question: I was thinking more from the perspective of an investor who is personally handling the day-to-day operations of their rentals (rather than delegating to a property manager). In that scenario, activities like direct tenant communications, dealing with turnovers, coordinating with attorneys, contractors, and vendors feel like they should fall under the “material participation” bucket, since the investor is actively running the portfolio.

That’s also what I meant when I asked which platforms/tools most RE investors use to spend the bulk of their time managing these day-to-day activities — since those hours are what typically count toward eligible material participation.

Your context on how the IRS distinguishes between investor-type vs. operational activities is super valuable — thanks again for laying it out so clearly.

@Michael Plaks

That makes sense, thanks for clarifying. My follow-up is whether direct communications with tenants, vendors, or attorneys (via email, phone, or meetings) would be considered eligible hours. Those seem like core activities of operating the properties, not passive “CRM management.”

By extension, I’d assume that if those same activities are done through online tools (e.g., using a property management platform to message tenants, coordinate vendors, or manage maintenance requests), they should also count. Would that not fall under the same category of “material participation” in day-to-day operations?

Hi @Joshua Thompson,

Thanks for the reply. I may have worded my question poorly. What I’m trying to understand is: which platforms do real-estate professionals typically use to perform REP-eligible activities/work?

In other words, where is the work happening most often (e.g., property-management systems, lead platforms, CRMs)? If possible, could you share the specific platforms your team uses most frequently?

I’m curious to hear from others who are actively pursuing or already tracking their Real Estate Professional (REP) hours.

Which platforms or tools do you find yourself doing the bulk of your real estate work in (e.g. property management software, spreadsheets, CRMs, deal analysis tools, etc.)?

@Sean O'Keefe- Can I also get a copy please? 

Congrats @Chase Taylor! I also invested my first buy and hold rental in Missouri. However, mine was a SFH in Grandview.

Wish you much success! 

Thanks for the feedback all. I figured Kansas City was a great market for investing, period. Whether you're looking for SFH or Multifamily.

However, I am looking for other suggestions as well. Anyone ever invested in multi family in Atlanta, Dallas, Houston, Washington. Perhaps any other markets I haven't listed that are solid choices? 

Since this will also be a situation where I'll be moving, I'd like to consider all options. :) 

Hello PM Community, 

I just invested in my first SFH in Kansas City and financed it with a traditional conventional loan 20% down.

Since I do not have much capital anymore, I am looking to accelerate my investing strategy by house hacking a Fourplex and using a FHA (3.5% down). However, I live in California which is not a suitable market for investing.

I realize I'd have to move into the Fourplex if I wanted to use FHA financing. So what I'm really looking for is recommendations on which out of state markets I can find deals on Fourplex properties?

Marco, living in Southern California I am highly leaning towards investing via turnkey. I know your company Norada Real Estate is a hybrid promoter/turnkey company. I would love to hear more from your past investors as you've mentioned above. 

@John Duguid Thank you for your insight. If you were in my position as a beginner investor looking to purchase a multi-family for the first time as a buy and hold strategy. Would you purchase locally like you've stated in the San Joaquin Valley (Bakersfield / Fresno) or Riverside County? Or would you take that leap as a beginner and purchase out of state and look east for markets where properties and way more affordable than in Southern California? 

I'm hesitantly leaning towards the turn key property management route where the property would be renovated at purchase and tenants are taken care of through the property management. However, since these turn key property management companies make their money on reselling to investors at near retail value, I'll probably lose significantly on that instant equity I could get not going the turn key property management route.