First off, if you have passive activity losses carryovers (unused losses from previous years) those losses wil be recognized to the extent of your passive income (gain) from the sale.

Normally with long term rentals though, losses are considered passive activity losses and not released until you dispose of the property.

How can I verify that they are active duty and getting the amount of pay they claim?

There are a lot of active users in Houston that you should be able to connect with and meet at local meetups if you don't know them already from your experience.

Initial inquiry (FF, email, social media)2.

For non-primary residences, they have to follow all of the following rules to receive a permit: - the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)- The building standards of the underlying zone district must be met - Adequate parking is provided - Defensible Space requirements are met - Valid water and sanitation must be demonstrated - No more than five (5) bedrooms are in the dwelling As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it.

I will add, since it's colder now, wasps, bees, etc are not very active and either die or inactive. 

Hi - are there any scenarios in which mid-term rental income/losses can be considered as active income rather than passive, besides when one has REPS status?

I've seen active pump jacks in the yard, but not sure who was there first...the well or the house. 

The social peer pressure among the group will usually force them to figure out problems/drama that otherwise would be much harder if they're not in the same social circle.