As an example, we were doing a charity project for a home owner that costs us $30 in materials but $210 in licensing and permits.

I am no CPA (and you should consult with one) but how do you plan to meet the IRS material participation rule with a $400K W2 job. 

I did a simple Google search.Read this:What Is Material Participation?

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

That is fine as a start, but only as a start.I emailed one of these companies to point out that none of their Youtube material cover the sale of our properties.

If you own the land outright, you can get a construction loan for labor and materials.

The vertical cost (construction cost) is consisted of material + labor + contingencies (surprises) + overhead + profit.

One thing for sure; thanks to the new tax plan accelerated depreciation is about to get materially even better!

- Learning Resources: Recommendations for learning materials focused on Texas real estate?

I've looked on your website and found a great deal of useful materials.