If you have passive losses from rentals they can offset this new passive income.If this joint venture goes beyond one house and balloons to three or four or more a year, you and your brother should both consult professionals. 

New to this level of investing, but I’ve spent 20 years as a consultant helping others do commercial ground up development.

I would consult with an attorney. 

I did have a free consult but ya know...there’s only so much you can discuss in one hour and I thought of note questions after I left.

If you are saying you aren't a distressed property/foreclosure avoidance consultant, I would also be hesitant to have to prove that i'm not.https://www1.nyc.gov/assets/dca/downloads/pdf/abou...

@Dustin Hood , consult your CPA. 

This means you need a monitoring system which are really inexpensive.

@Paul AllenHi Paul,De-granularize the classifications and tax everyone at the Real Estate Professional level as the default.Barbers do not have to write down every clip of hair they cut and every comb they make and qualify as a cutter or a comber.CPA's do not have to write down by the minute, every thing they do during the day in a personal journal, to qualify for tax treatment as a tax consultant or a bookkeeper.That would seem absurd.The personal micro-tracking is an onerous requirement, that could be easily frauded by those who would want this tax treatment anyway.Just my 2 cents.

Menon,Have you tried looking at some smaller banks like MB or PNC to consult about investor financing.

Always consult with your attorney before you rely on the above information.