What’s the minimum a partner needs to do in an LLC (owning rental property) to be considered active enough to avoid it being labeled an investment security under the Howey Test?

I’ve been working on a simple underwriting tool for small investors who don’t want to spend an hour in Excel every time they look at a property.Here’s how it works:Drop in the basics (price, rent, expenses, loan terms)In 30 seconds, it spits out NOI, Cap Rate, DSCR, Cash-on-Cash, and a simple traffic-light recommendation (Green / Yellow / Red)You get a clean one-page summary you can actually use to make a quick “go/no-go” callI’m testing it out with real investors now.

I had one other person test this and she immediately got bookings. 

Also, the NMLS test is the test that mortgage professionals have to take to originate certain types of loans.

And take the Road Test each year.That’s it.Learner’s Permit.

Stressed tested it, now to stress test me!

A corporation or an LLC taxed as an S-corp/1065 cannot have a “principal residence,” so the ownership and use tests both fail.

We spent about eight months bouncing between platforms—Hospitable → Hostaway → Hostfully → Hostify—and ultimately ended up right back at Hospitable.After onboarding and fully testing each PMS, we consistently ran into glitches or missing features that didn’t align with our business structure.

Good news and bad newsGood news: your wife's REPS eligibility covers you, as well.Bad news: you need to meet the material participation test with respect to these two properties.

Test with small jobs first?