REITS and stocks are passive and real estate is active. 

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

My family has been active in the Las Vegas real estate market since 1989 working mainly in single family rentals. 

I've argued for this and the powers-that-be do have a good argument that they are still active just in other ways, how to cover labor and actions during that, etc..

Visit with people there and you'll get a more detailed look at things from people actively working in the areas.

It’s a great way to connect with investors and professionals in the Phoenix market who are active in residential deals.Looking forward to seeing how your journey progresses—feel free to share updates or ask questions as you dive deeper into the residential side!

Jay, I am not sure what the market really looks like for builders in Midland-Odessa but it is crazy that there is not more activity in multi-family in that area. 

I’ve been active in the Indy investment community for over 20 years.  

For example, population growth in certain neighborhoods and increased investor activity have created opportunities for both long-term rentals and value-add deals.If you’re torn between wholesaling and holding long-term rentals, I’d suggest thinking about your long-term goals.

Note that active income isn't the same thing as non-passive income, it's lower bar that just requires that it's a business activity that isn't just entirely passive.