Bottom line, which I think we're all in violent agreement about :) ... materials procurement is a complicated game of strategy and the "right" answer varies from job to job, material to material, business to business, and town to town.

2- If I employ a full-service property manager to handle tasks such as cleaning, maintenance, booking, and guest communication, while I focus on business aspects like property search, renovation, decoration, bookkeeping, and supply procurement, would this still qualify as material participation or could it pose a risk?

In respect to your financing, that really depends on the properties you find and the deals you are able to procure.  

It's easier when you have capital (job) coming in as it is also one of your greatest assets and the easiest way to procure loans.  

I don't mean to come off as rude...I just may be missing something.It's not like if you paid down your note by $30,000 your mortgage payment would go down...you would just be taking a couple years of the procurement of the loan. 

Also, Wayne, how many times do you think EVEN A USED CAR DEALER (excellent analogy, btw) has a situation where they procure a car from one of their sources - auction, private individual, etc - and don't sell it within a number of days and decide to stop payment on their seller and tell them to take the car back because they weren't able to sell it and are too poor and morally bankrupt to buy it themselves?

what you send and how you procure it will make a huge difference on cost and strategy 

Code pt. 1450, govern the business of real estate brokerage in Illinois.The Act, as amended, defines a real estate “broker” asan individual, partnership, limited liability company, corporation, or registeredlimited liability partnership other than a real estate salesperson or leasing agentwho, whether in person or through any media or technology, for another and forcompensation, or with intention or expectation of receiving compensation, eitherdirectly or indirectly:(1) Sells, exchanges, purchases, rents, or leases real estate.(2) Offers to sell, exchange, purchase, rent, or lease real estate.(3) Negotiates, offers, attempts, or agrees to negotiate the sale, exchange,purchase, rental, or leasing of real estate.(4) Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange.(5) Buys, sells, offers to buy or sell, or otherwise deals in options on real estate orimprovements thereon.(6) Supervises the collection, offer, attempt, or agreement to collect rent for theuse of real estate.(7) Advertises or represents himself or herself as being engaged in the businessof buying, selling, exchanging, renting, or leasing real estate.(8) Assists or directs in procuring or referring of leads or prospects, intended toresult in the sale, exchange, lease, or rental of real estate.(9) Assists or directs in the negotiation of any transaction intended to result inthe sale, exchange, lease, or rental of real estate. (10) Opens real estate to the public for marketing purposes.(11) Sells, leases, or offers for sale or lease real estate at auction.

Balint’s conduct included accepting phone calls inquiring about the subject property and directing or assisting in the procuring of a prospective buyer to purchase the subject property.

We learned about procuring investment capital, acquisitions, REI negotiations, inspections, repairs, dealing with contractors, rental contracts/agreements, being a landlord, finding a good tenant.