@Charmy Lee There are actually some distinct advantages that military members have over other investors that can help you become incredibly successful as a real estate investor.

So when you’re talking about those markets, I do think SFH/condos/2-4’s have distinct advantages over MF: better loans (low rate 30 year fixed/no need to refi in 5-7-10 years); much stronger appreciation; usually top notch  tenants who are easier to deal with.)  

The salary versus the owner draw distinction is the critical part of all of this.

There's also a distinction between a fair market value and a appraised value.

I have found a few samples online, but some are very distinct than others.   

@Marc Winter You make an excellent point on the distinction between repairs and upgrades as well as the time necessary to make them.

Why has Congress in its wisdom decided to make the distinction between active and passive losses?

Today the rental market is strong and expects to continue unless the market makes a very distinct change.  

Yes, you make that distinction in the gift tax return on form 709z 

One of your biggest potential issues may be insurance if you are trying to use one property for two distinctly different ventures (LTR vs STR).