While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

It also has expensive transactions which necessitates long hold times (and helps prevent panic selling but leaves the equity relatively inaccessible).

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Also, I'm sure that someone can correct me if I'm wrong, but I'm relatively certain that this necessitates you to work with cash or private money.

This necessitates either reinvestment of profits back into the business and/or some type of equity partner - either limited or active.

I'm not saying you're wrong, clearly you have been very successful, but to me the risk mitigation factor alone necessitates having some kind of money partner.

I believe most states if you actually read the statute of what activities necessitate having a license most all of wholesaling would require a license in most state.. contract flipping what have you.Our state is on the war path against private lenders ... in Oregon you need an NMLS license or a broker to do your HML on any 1 to 4 unit regardless if its owner occ or not. there is no such thing as a commercial purpose unregulated loan like many states.So you have all the licensed HML turning in the bigger private guys who under cut their rates... they will watch at court house.. they will pull deeds of trust to see who the benies are then make complaints and the state will follow up and will issue cease and desists.