I have some questions about the material participation rules for the STR tax loophole.

The courses really help, only if you actually study the material with the intention to learn instead of memorizing the material and the practice questions.

Some people get tripped up thinking "I bought all this raw material and left it on site, and that should count toward my value". 

They are great for storing materials on the job site.

With the increased cost of materials and labor their losses are exceeding policy income.

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The contractor takes that money and buys some materials and holds some money to pay his labor for a few weeks and then he can work off the draws from there and then at the end of the project you get your 20% back minus draw fees.   

Definitely, if you know what you are doing, keeping the costs low (which is difficult in this market with cost of material rising), it might work out. 

To be considered a trade or business for the qualified business income deduction, all of these must be true:Your participation in the rental activity must be regular, continuous, and substantial.You conduct the rental activity with the expectation that you'll make a profit.The rental activity is conducted in the United States or Puerto Rico.Rental activities that are considered trades or businesses include:A real estate professional who materially participates in the activityA rental to a commonly owned trade or businessRental activities that aren't considered trades or businesses include:Rentals for less than fair market value (FMV)A lease agreement in which the tenant pays for real estate taxes, insurance, and maintenanceA vacation home that's rented out and also used as a personal home

That way, you will likely already have hit your 100 hours of material participation, but your cleaners, for example, would not have exceeded you since you would have only had a few bookings before the end of the year.Also, another good one, is that material participation does not count until you are in contract on a property.