You materially participate in an activity if you're involved in the operation of the activity on a regular, continuous, and substantial basis.

You could also qualify if you spend more time on the property than anyone else involved, regardless of hitting 100 hours.Ex. managing contractors, handling bookings, setting up the property, or dealing with guest communications, you might meet the material participation requirement without needing to track 100 hours.The key is to document everything.

@Heather Luu  the first thing that comes to mind is if that check was from the insurance company or insurance company funds, it might be time to get them involved.

Property management involves overseeing and maintaining rental properties on behalf of the property owner.

Nonpassive income: Real Estate Professionals, STRs and K1s from businesses where you have hands-on involvement aka material participation.Each group has its own rules, and generally they cannot offset one another.

No hoping, waiting, timing involved.

Without a VERY good and valid reason, it may be fraud.You may want to get an attorney involved and/or the appropriate state board.

Locally in PA, im just involved with commercial real estate. 

For a single family home the size and scope you're describing, I wouldn't involve an architect unless you're looking for end-to-end project management.   

Infact, I personally dont like the model where the property needs to be exited in 4-6 years to be able to realize PnL for all parties involved.