I know this may not seem possible, and probably not the answer you were looking for, but it would be worth partnering with another active investor, bringing in a passive investor(s), or even waiting until you have enough capital to deploy into the right deal. 

Diving into real estate investing is an exciting journey, and this community is a fantastic resource for learning and networking.

Good luck in your journey, you are on the correct path. 

Occupancy can be off the charts in places like this because there is so much activity or reasons for people to visit during what would be slow days of the week and off season months. 

Active real estate investors who can't get comfortable not being in the driver's seat, people who just don't like real estate as an investment, those who can't get comfortable with the risks, those who just don't understand syndicate investments, those who have heard bad things about this type of investing from others, and people who have invested in syndicates and experienced bad results.

Even including modest appreciation and equity pay down, the ROI is between 7% and 12% for a non passive holding (not good for an active holding)I can easily afford this level of negative, but do I want to?

Good luck on your journey!

Stay focused on your goals, and best of luck on your journey in real estate!

But hearing your expertise is super helpful  as it's relevant to us here as we start our investment journey into MTRs.Have you had your place 90% rented most of the year, or have you experienced blips in vacancies?   

Regarding your second question, are you asking if those activities help meet the IRS material participation tests or qualify you as a real estate professional?