Since LA has banned STR for more than 90 or 120 days, requires one to live in the property for 9 months or so and ADU's or guesthouses cannnot be used as STR, how does a host pass the Material Involvement test?

@Michael Plaks Me too, but don't let that analogy carryover into promoting DIY TurboTax warriors haha.

You have to try to promote it in the events here and in local Facebook groups for investors which they will have.2.

I would also throw in Facebook, and spring the extra money for the promotion.

I wouldn't buy a brand new home from brand new builders that do not have enough experience or those who use cheap material.

Some of the members/partners may not be eligible to use the STR strategy if the other members are material participants. 

Before I would personally buy a course, I would listen to/read all the free material on out-of-state investing (there's a lot out there). 

Generally a church in the neighborhood is a willing donee because they can use sweat equity and donated materials to make the property habitable again and either sell it or rent at below-market rents to someone in the church who needs that assistance.

Finding the property, negotiating, finding and managing any subs for work he would not do (such as plumbing and electric), purchasing materials, doing quite a bit of the labor. 

You need to be materially participating in those hours for them to count.