Initial Inspection and Assessment: Document property condition before work begins. 

Government is nailing real estate investorsto the wall in a bold move to control financial crimes.BOI is yet another Federal program, “Beneficial Ownership Information”.The BOI program, a key tool in the fight against financial crimes, requires every business to document their 'Beneficial Owners '.

The money isn't legally yours until it's earned, which is every month when rent is charged.

Is it even legal to charge a broker's fee to a buyer that you are not representing as a listing broker?

Your question is a legal question, so seek legal advice.

You could also qualify if you spend more time on the property than anyone else involved, regardless of hitting 100 hours.Ex. managing contractors, handling bookings, setting up the property, or dealing with guest communications, you might meet the material participation requirement without needing to track 100 hours.The key is to document everything.

It checks all the boxes to be legal - 2 egresses, windows, 7' ceilings, bathroom, full kitchen, etc. 

I agree with @John Underwood & @Mike Grudzien, and I would expand on documenting *EVERYTHING*. 

I would checkout legal zoom or zen business before meeting with any of these lawyers or accountants to do it.

Is it not true that when you lease your property to an LLC and have the LLC manage tenants, you create a legal barrier between yourself and the property’s operations.