With a bit of decor and management savvy you can easily be in the top quarter or even 10% without needing to build a waterpark in your backyard and bring in influencers for your photos. 

., definitely string lights somewhere that makes sense, and other decorative accessories like plants.

Might come out green overall but it’ll be close.bonus: if you’re willing and capable to do an excellent t STR, which I would budget a good $40k-$50k on the furnishing/design/decor (more if you are outsourcing it all) AND are putting down 20%+, you’ll be able to have a very positive cash flow asset.

You've got to be spot on with your design, decor and amenities so really evaluate your property honestly in comparison to your competition and ask if it's going to be a page one listing.

The decor looks good.

The property wasn't underwritten, the homeowner saw money signs instead of reality, the market and guest avatar weren't researched, and good chance the furniture and decor were 15-20+ years old.

2- If I employ a full-service property manager to handle tasks such as cleaning, maintenance, booking, and guest communication, while I focus on business aspects like property search, renovation, decoration, bookkeeping, and supply procurement, would this still qualify as material participation or could it pose a risk?

Also best place near Tulum to buy Artwork and other decorative items?

You did a great job decorating it and photographing it! 

The decor doesn't need to be expensive, she thrifts a lot of vintage pieces and orders the majority of soft materials and bedding/mattresses from Amazon, but you can feel the difference between a professionally catered home and a less curated space.