For Canadians seeking to tap into the market in the States, the way the LLC is arranged creates a challenging tax environment and basically leaves you limited return. 

As an aside, I'm voting no on Proposition 33 which is on the CA November ballot - they are trying to limit rent increases between tenants.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.

I am not looking to get a real estate license for now, so that has seemed to limit my options as well.

That would obviously be the route to go. is there a limit to how much of the account you can use to invest?

Some surrounding suburbs still allow it, but the only way to have a new STR approved in Waco city limits is if it's in multifamily or commercial zoning.

Quote from @Jonathan Greene: Quote from @Jonathan Klemm: Good call out @Jonathan Greene - @Moderators need to continue to step up there game, but there are obviously limitations.  

The prices seem steep for a very limited amount of coverageI agree with that. 

It IS having a massive credit limit/card...Just my two cents. 

It seems like each town has its own regulations and limitations.