Quote from @Michael Galace: I'm utilizing their service, been with this agency for 5 months now. 

To qualify, taxpayers must meet specific criteria demonstrating that they are real estate professionals who materially participate in their rental activities.How to Navigate the Rules:Step 1: Identify your real property trades or businessesHere is a list of activities that are considered to be a real property trade or business:RedevelopmentLeasingConversionConstructionReal property developmentReconstructionOperationRentalBrokerageManagementAcquisitionIf you participate in multiple of these activities, you may be able to combine them making it easier to meet the material participation hour requirements.Step 2: Demonstrate material participation in real property trades or businessesThere are seven tests to determine if you demonstrate material participation.

If Im understanding correctly, you paid for materials directly using credit cards, and then allegedly the contractor ran off. 

On going maintenance presents an entirely different set of challenges with rising insurance costs that disproportionately impact buildings such as what you propose due to replacement costs, rising labor and material costs impacting cap ex. 

Rising tariffs may increase rehab costs by 10-15%, pushing savvy flippers toward local or sustainable materials, which can boost after-repair values by 8-12% for eco-friendly upgrades.Hot markets include Fayetteville, AR, with strong population growth and median home prices at $395,000, offering solid 25%+ profit spreads.

It helps with material participation but is permanent.

The key with the real estate professional status is to make sure you materially participate in your rentals.

Then there's the call 811 underground utilities. 

Labor and materials are awful at the moment.

This property would be used as a mid-term rental, so all utilities and services would essentially be baked into the monthly cost.Thoughts?