It depends on if you got to the level of a trade or busienss which would determine if its ordinary income or not.Then the amount of time you spend on the business would determine if its passive or non-passive.

In other words homes that are really not STR level homes were turned into STRs. 

I've already done deals and I'm trying to push towards the next level and I see lots of potential in the system. 

Another choice is that you have the level of interest that should be expected at a 15% vacancy rate.  

My initial infant level of knowledge would tell me it's a combination of being poorly managed (I calculated they're spending nearly 65% on expenses to only have $305K NOI on 95% occupancy at $875/m, if that's even the average rent/unit currently occupied). 

Peerstreet was run at the C level by techs - not finance people.  

@Jon Rosburg, I'm an agent for the STS, and it's true, we do have a lot of clients assigned to us individually, but not all of them are looking in each market at the same level or with the same focus/intensity. 

Allentown, Bethlehem have been sluggish in price terms (6% and 2% respectively above their 2009 'fair value' levels).

So I have gained so much from just participating at a fairly low level for a few years, but the people I've met and things I've learned have proved invaluable. 

I am doing this completely remotely, which has been a massive pain/lesson learned (topic for another day).I signed a very high-level agreement (i.e. expectations simply say "drywall and paint") with him for drywall and paint work at my home for a total of $10KI have paid $5K as a down payment as well as ~$2K in materials over time, as neededThere have been multiple break-in's in the home, and he has done me favors of working with the police, and boarding things up.