I also buy my own materials.

Hi Jon from Boyertown, PA-You and your fiancé are interested in buying your first short-term rental and wonder profitable areas to purchase with a budget up to $500,000.I would look at places along the west coast of Michigan, Grand Rapids, Kalamazoo, and near Ann Arbor, MI.It is important to understand the local STR regulations in each community and partner with a property management company that can help your navigate that and manage it well for an excellent guest experience.Don't forget to look into bonus depreciation and doing a cost segregation study to increase the tax benefits of ownership and if you "materially participate" in the management of the property per IRS guidelines it can offset active W-2 income which most real estate cannot.To Your Success!

Does anyone have any good studying material for this exam or have any insight on what I should focus on?

Quote from @Craig Jones: The biggest issue here: If you're covering a property with a homeowner's policy or LTR landlord policy and the property is actually a full-time STR, then you're concealing material info about the property's use from the insurer. 

@John Zhang If your wife qualifies for Real Estate Professional Status (REPS) and materially participates in managing rental properties, there is no limit on the amount of rental losses, including depreciation, that can offset your W-2 income.

Excess depreciation could be suspended as a passive loss unless you qualify as a Real Estate Professional (REPS) or materially participate in a Short-Term Rental (STR)—which would allow you to use the additional depreciation to offset W-2 or business income.

I have been consuming as much education/reading regarding out of state investing as I can as well as literature regarding buying larger buildings (not quite the syndication level) although I have been reading that material as well to digest.

-Destin is primarily driven by tourism, military, and healthcare.

A Qualified Joint Venture (§761(f)(2) )allows two spouses operating a business together to not file a partnership return; however the business can't be held as a state entity (§301.7701-2) like an LLC and it also requires material participation by each spouse under §469(h) which can be hard with a SFH. 

How about a sales contract with contingencies but with a limit where the buyer can only terminate the contract if their find material defects exceeding a certain dollar amount.