What activities qualify for the material participation tests for making your short term (<7 day on avg stay) active instead of passive income/loss?

In real estate finance and note investing, stress-testing generally refers to evaluating how a potential investment would perform under adverse conditions rather than only under optimistic assumptions.

Beyond basic numbers, how do you stress-test deals to make sure funding won’t become a problem?

Every purchase when financed traditionally is very cash intensive.

I have a property I bought 5 years ago with the intensions of doing this strategy.

If you want to send it my way for beta test happy to do that plus share with a few of my developer/builder colleagues across the US.

For a 1950s home where lead is statistically likely, is there any benefit to voluntary testing, given that a positive test becomes a permanent, documented condition?

Distance can raise questions if records are weak, but it does not fail the test by itself.With average stays under 7 days, the STR is evaluated under the material participation tests.

Looking on Loopnet, or MLS, identifying the few reasonably priced properties, offering 15% below asking, and negotiating a 10% “discount, is NOT deal making - it’s investing.Nothing wrong with that - I did a lot of that in Phoenix and Miami in 2012 - 2014, and was rewarded handsomely for my efforts.However, despite purchasing properties for seemingly give away prices, my return over the next 10 years was just (on the high side) of what you’d expect as an investor.Deal Making ( In some of my previous posts I’ve chronicled specific deals I created) is a lot more “intense” than investing.

Hey Renee,If your budget is tight, driving for dollars is attractive because it requires little cash...but it’s also one of the most time-intensive lead gen strategies.