I’ve noticed many investors running into delays this quarter — contractors booked solid, materials harder to find, and lenders tightening up.Curious — how are you all managing contractor schedules this late in the year?

I'm uncertain about material participation in the rentals. 

You can break it out by general RE activities and material participation.

There are two main tests for the STR loophole:1) Material participation2) 7 days or less is the average stayTherefore, in the real estate world, MTR is usually 30 days and more and would fail the second test. 

Also, if your short-term rentals qualify under material participation rules, you can still use depreciation benefits to offset W-2 income regardless of whether the property is in an LLC or not.When you own in both states, you don’t necessarily need a separate LLC for each property.

I did the design, permitting, procuring materials, and I was also the GC. 

The main point still stands, though: if you qualify as a REP or materially participate in STRs, those deductions can be powerful.

If you’re pricing a build for yourself, it’s worth reaching out to a couple of local builders for estimates since they can break down labor and material costs specific to your lot and design.

They have storages and use stored materials from previous projects and buy dirt cheap materials and appliances from auctions.

We both materially participate in our rentals (>500h between both of us).