You materially participate in an activity if you're involved in the operation of the activity on a regular, continuous, and substantial basis.

my property manager asks 10% of total rehab cost, her team will look through the project end to end, without much of my involvement. 

Nonpassive income: Real Estate Professionals, STRs and K1s from businesses where you have hands-on involvement aka material participation.Each group has its own rules, and generally they cannot offset one another.

For a single family home the size and scope you're describing, I wouldn't involve an architect unless you're looking for end-to-end project management.   

It took a while, and there were some fees involved, but it was totally manageable compared to what I would’ve paid with an attorney.

This sale usually involves a monthly payment, which is on top of the rent.

Low cap rates because you dont have to do anything, just collect the 4% or 5% like a CD at the bank.10% Properties are going to be more involved.

Infact, I personally dont like the model where the property needs to be exited in 4-6 years to be able to realize PnL for all parties involved.

Anything beyond that is going to have destructive consequences for everyone involved.  

They dont have any hard stats on the success of the people in the network so they couldn't tell me how many people who paid for the network had gotten involved and had success from their process.