.)- Material Participation- Cost Segregation/Bonus DepreciationKrishnan.

Create a Joint Venture Agreement that specifies the following: Recitals; Rights, Duties, and Responsibilities of each person/ entity entering into the agreement (Who will pay for what to include, but not limited to any down payment, holding costs such as Property Insurance Premiums, Utilities, HOA Fees if any, Rehab Materials, Contractor Labor, Loan Payments, etc.).

Text messages can easily get buried, are hard to track, archive, or retrieve if you ever need documentation to prove when a request was submitted or how it was handled.The most effective alternative often involves using property management software or a tenant portal like AppFolio, Buildium, RentRedi, or TenantCloud.

A few thoughts based on your questions:Active vs. passive income for STRs:STR income can often be treated as active if the average guest stay is 7 days or less and you materially participate (which you already do, based on your involvement in cleaning, minor repairs, etc.).

In such markets you can go the route of being a hotel alternative, which is cheaper regarding furnishings, or being a destination and experience.If your focus is most on appreciation, however, you may find more opportunities for such in markets that are more saturated regarding STR.

Bonus Tip: Create a "Daily Log"My contractor (or I, depending on the day) writes down what work got done, what materials were purchased, and if any payments were made.

Renewing either tenant's lease prior to closing would be a material change to the conditions of the deal.

Or whatever marketing material they got exposed to at the time, or whoever their real estate agent recommends, if they are working with one. 

A contractor with materials in stock and a full-time crew will spend a lot less than, say, a doctor hiring a GC who charges full retail plus a management fee.

Buying a new rental and doing a cost segregation study in 2025 can generate large losses, but those losses are passive unless you or your spouse qualify as a Real Estate Professional (REPS) or meet the STR loophole (material participation in a short-term rental).If you qualify, the losses can offset W-2 income, capital gains, and recapture.