I did look at some of the material participation criteria and we should easily surpass the requirements since we pretty much spent time improving the home ourselves, managed all guest communication, etc.Thoughts?

Guests were rude to my face, made unreasonable demands to the point that I felt uncomfortable in my own home. 

Nuggets of gold in every post.

Again, not to split hairs, she's exercising her rights that arise because it's his homestead not hers.Generally, a deed is prepared showing the grantor's marital status. 

Don't be afraid to share, we'd love to chat. biggerpockets.com/guest

I’m curious, how long was it before YOU reached full time real estate status?

Treat brokers like gold.

Your brother-in-law’s 10% ownership won’t affect your ability to claim this exclusion on your portion.Unfortunately, the option to roll proceeds into another property (like a 1031 exchange) only applies to investment properties, not personal residences.You’re likely eligible for the exclusion, but I recommend confirming with a Tennessee tax professional for any specific state tax issues and to verify your status with overseas residency.Let me know if you need more guidance on this or related financing!

If you are interested in coming out, I can send out a guest pass. 

The STR guest wants a nice vacation.