Short-term rentals (STRs) offer a way around these limitations by being considered active income if you meet certain material participation requirements, such as working more than 500 hours or 100 hours, surpassing anyone else involved.

With $50K—$100K, you could fund a rehab and refinance to free up most of your equity for the next deal.Cons: BRRRR often requires more hands-on involvement, especially managing contractors and timelines, which could be challenging with your demanding job and family obligations.

And treat this as 1/5th space as a rental.Or down the road, would it be better to have the entire property (home & garage/room) rented out to everyone involved and the property become an investment property. 

Just bear in mind that trips to Maui involve 'discretionary' funds...A few more things to think about during your due diligence. 1.

Why type of price point are you looking, what anticipated ROI/cash flow, how much time do you want to be involved in, what is your risk threshold, how long do you plan to hold the property, are you looking to invest locally or open to exploring other markets, etc.? 

Getting multiple contractors involved will be your best bet to get a reliable estimate, though you need to come up with a scope of work.

It involves investing in strong growth markets, diversifying, and buying distressed properties.

This year they’re real estate syndicators; three years hence they’re running and selling oil drilling participations, after that they’re involved in fin tech.  

They also have a track record of five prior funds which the track record was certified by a third party firm.

I'm a very small fan of Dave Ramsey, so I'm not looking to mimic BRRR or FIRE, especially since I'm now 68 and perhaps a little late to the party.....cheers!