If they don't have one, I bet they know somebody.Answering your questions:1.

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

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

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.

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.

my property manager asks 10% of total rehab cost, her team will look through the project end to end, without much of my involvement. 

I'll bet my favorite Tulsa super-agent, @Tom O'Stasik, could answer your questions!

As soon as you start discussing your business practice and strategies with your customers (tenants), then all bets are off and you run the risk of Fair Housing violations. 

Of the options I’ve purchased, a majority expired unexercised, mainly because they were “flyers” for me on a bet on a beneficial event happening that wasn’t likely to happen.

It seems like you enjoy being active and using your hands so maybe the BRRRR method (buy, rehab, rent, refinance, repeat) is your best bet as you could save some money and do plenty on your own, you could also do a live in flip potentially and sell it or rent it out later.