I googled it and found this.Notice this is for an individual, they are not adding 2 owners hours together.A cost segregation study itself does not have material participation rules; rather, material participation determines how you can utilize the accelerated depreciation losses generated by the study to offset different types of income.Without material participation, the losses are considered "passive" and can generally only offset other passive income.

But the way we have set the rules for this game, there is only one outcome and BP is the best example: if you live long enough as an investor you are going to be a bazillionaire.

Just make sure the lender who holds the note doesn't have any rules around acceleration clauses in their loan covenants.

Because of that demand, rents stay strong and you can still find properties that hit the 1% rule and positive cash flow, especially in the $120–180k price range for smaller multis.

The most common exemption is Reg D rule 506(b) or 506(c).All this is to say, create the LLC and follow the rules of the exemption, which dictate how you can market for investors and what investors you can admit.  

However each location seems to often make up their own rules and change the rules. 

Hi Joshua — when you’re choosing a CPA for real estate investing, here are a few key things to look for:• Someone who actively works with clients investing across multiple states — that’s huge for correct filing and strategy• Experience with cost segregation studies and how they flow through returns (especially if you use bonus depreciation)• Understanding of passive vs. non-passive activity rules, so you can actually use your losses instead of watching them get suspended• Knowledge of short-term rental tax rules if you’re in that space — the material participation tests work differently and can save a lot in taxes• A CPA who meets with you during the year, not just at tax time — planning beats reacting every timeIf you ask these questions in your interviews with CPAs, you’ll be able to quickly separate true real-estate specialists from generalists.Hope that helps — and good luck with your next purchase!

Fourth you make you're money when you buy and how you buy.

Alicia, your logic is on the right track, but here’s the clearer framework so you don’t accidentally miss or misinterpret the rules.1.

Last year, I read a book called The Fourth Turning Is Here: What the Seasons of History Tell Us About How and When This Crisis Will End by historian Neil Howe.