Material participation in the rental activities still required. 

You can talk to the bank about a loan; however, my bet is they will want some form of contract and scope of work and will only pay him at set milestones.

He’s got a solid reputation and is an active member of the local REIA.

Negotiate closer to $170K with creative financing is your best bet.

Would love to see an example of some real life qualifying activities and what you're including.

Tax deductions / write-offs should be a second concern.There are some rules that you need to follow to treat a short-term rental as 'active'(non passive) income which would allow you to offset it against other forms of income such as rental income / wages.

@Aaron B.So cool that you're actively responding to constructive feedback here!

We are actively managing two fund offerings, one focusing on real property (REO and off market properties), the other focusing on Pre-REO (vacant first mortgages).

I have met a few folks recently who are active in that market and I am planning on following up and seeing what their experience has been.

Especially if you are out of Denton, Lawton might be the best bet for you.Good luck!