That 6-unit gut renovation sounds like a solid project, and it’s awesome that you’re combining multifamily, infill, and modular STRs with tech insights from your proptech startup.I’d love to hear more about your approach to sourcing off-market deals and building a team for scaling — sounds like there’s a lot we could swap ideas on.

.- You must spend 750+ hours and more than half your working time in real estate activities, and you can make a grouping election to combine all rentals for participation purposes.- Once you qualify and materially participate, losses from rentals become non-passive and can offset W-2 wages.- Buying new properties in a 50/50 LLC ensures both spouses have ownership, making REP qualification cleaner.- Actively managed rentals (even turnkeys) can count; syndications and limited partnerships remain passive regardless of REP status unless you meet the 500 hr material participation on the groped RE.

@Jorge Abreu Jorge, this is an awesome breakdown that really shows the power of combining data, persistence, and relationships.

Welcome, Brian  great to see a focus on redevelopment and financing, especially coming from Northern Virginia where those skills are in high demand.Your passion for community development adds real purpose to your investing, and combining that with a solid understanding of financing can create serious impact.

Love your focus on multiple markets — Texas, Ohio, and Florida all have such different dynamics, so that’s smart.For tools, I’ve found that combining a solid CRM for leads, PropStream or Reonomy for property research, and networking with local wholesalers and investors really helps streamline acquisitions and deal flow.

I think speed and certainty of execution combined with a competitive rate is the best path.

For Short-Term Rentals (STRs), you can combine your spouse’s hours to meet the material participation requirementHowever, if you own both STRs and Long-Term Rentals (LTRs), be careful:    Material participation hours cannot be combined across different types of activities.     

It also varies a lot by area (eg insurance for two rentals combined is the same as for one rental in another area). 

Quote from @Julius Vincent: Hey @Alex Murkes - MA generally wants you to compute Form 8582 using only the MA-sourced income/losses, not a federal copy-and-paste with all states combined.

Not too long after this, our dishwasher went to crap and we had to replace it.