Is it possible to gain REP status while working with an out of state PM?  

If you’ve been in real estate for a while, you’ve probably heard people talk about Real Estate Professional Status (REPS)— but most investors still don’t fully understand what it means or how powerful it can be.Here’s the simple version:If you qualify for REPS, the IRS allows you to treat your rental income and losses as active instead of passive.That means depreciation, cost segregation, and other real estate losses can actually offset your other income — even W-2 income.For full-time investors or spouses who manage their properties, that can mean tens of thousands of dollars in tax savings every single year.To qualify, you need to:- Must materially participate in their rental activities.- Spend over 750 hours a year in real estate activities.- And more than half of your total working time must be in real estate.It’s not for everyone — and you have to document it properly — but for serious investors, it’s one of the most valuable tax tools out there.Most people think wealth in real estate comes from appreciation and cash flow…But the biggest gains often come from how you use the tax code.Curious — have you or your spouse ever tried to qualify for Real Estate Professional Status?

Does my wife's REP status allow me to deduct passive losses from the 2 rentals properties against our active income, or does the fact that she does not materially participate in managing the rentals prevent us from doing that?

I’m curious, why to you think requiring accredited status is BS?  

I no longer go to Facebook to get feedback not a reliable place to get advice much less look for a lender.

Hey William, what you said about S-Corp being a tax filing status and not an entity formation is spot on; that’s a common point of confusion.

Using depreciation, cost segregation, and the right entity setup can make a big difference in how quickly your cash flow adds up.If you’re starting to build your portfolio, focus first on strong cash flow properties, then later look at strategies like short-term rentals or qualifying for real estate professional status to offset more of your W-2 income.You’re definitely on the right path, real estate is one of the best ways to turn active income into long-term, tax-efficient income.Good luck, and happy to connect if you’d like to talk through what that might look like for you.

But even facebook might have some good local groups for you that you can network with virtually.

And with all that, "In Chicago, you cannot deny someone housing based on immigration status"?  

You cannot qualify for REPS - real estate professional status - if you have a regular full-time W2 job.