“Material Participation”.

I am an agent and own a handful of small multi unit properties in the Portland metro.

From a tax perspective, the IRS typically allows pre-rental work (like the hours you spent getting the property ready) to count toward material participation if it’s directly related to getting the property ready for rent.

I manage a large portfolio of rental properties on the Kona side, and at the very least can help you understand the market. 

One effective approach is to establish strong relationships with local suppliers to negotiate better rates on materials.

The materially participating rule is about STR, your LTR deductions are not affected by how much you participate. 2) Remember, you aren’t creating new deductions, you are simply pulling them forward.

Rehab is always tracked as its own cost centerLabor, materials, subcontractors, permits, all separate line items.

The market has a little pulse again.

Some owners want to treat you like a personal assistant, others are so cheap you could do a repair for just the cost of materials (no labor charge) and they still wouldn't be happy.Log EVERYTHING in writing!

When investors use material participation for 100 hours and greater than anyone else’s time, they need to prove their time and someone else’s.