Joshua Tree has been pretty tough for the last couple years @Sri S.

(My assumption is it may be tough to prove enough material participation if using someone local to manage.)Two things worth noting:1- I'll be discussing with my CPA in-depth soon, but would like to hear other's experiences on this.2 - The main reasons I'm looking to STR's is the tax benefits (Cost-Seg) & appreciation that comes with buying in these areas opposed to the mid-west where I look for long-term rentals..

The cost to run is negligible as fuel is very cheap as well as manual labour and materials are also cheap and we grow as much of it as we can.

Hey @Adolphus Fletcher,When it comes to avoiding personal guarantees on mortgages, especially through an LLC or S-Corp, here’s what I’ve learned:In the beginning, it’s tough to avoid personally guaranteeing loans unless your business has strong credit and a solid track record.

You supply the contractors materials to save money .There is also the impression if you are an "investor" , contractors will give you a better price.

These situations are tough, but staying organized and pushing the process forward yourself will make a world of difference.

I guess the part I'm not understanding is that it sounds you can combine their time for material participation (which is 500 hours), but not for the 750 hours required for REPS...but 750 > 500, if you meet the 750 hours, you already passed the 500 hours for material participation.Or you can get 500 hours combined material participation, but then one spouse needs an additional 250 hours of "non-material participation" (??)

I've read a lot on here and you have to be tough!  

Renting multiple rooms is a great way to generate high cash flow from your properties but I must call out a much overlooked watchout... many lenders will not allow this type of property use and refinancing them can be tough. 

The other thing to keep in mind is that you will have to keep a supply closer or room with your extra bedding and materials and a checklist for you cleaning person to run when they turn the unit, as well as a smooth process to screen, lease sign, and collect payment from the guest.