Conservative LTV first trust deeds are currently paying over 9%  and generate good cash flow when buying doesn’t make sense.Yes that´s another wonderful alternative, I invest in notes as well, got no tenants & no toilets and with those interest rates a return, where I don´t need to buy real estate for cashflow.

If you have given the contracdtor a deposit and that deposit has been used to purchase materials, & those materials are in your property I would;1.

I am no CPA (and you should consult with one) but how do you plan to meet the IRS material participation rule with a $400K W2 job. 

As an example, we were doing a charity project for a home owner that costs us $30 in materials but $210 in licensing and permits.

If you own the land outright, you can get a construction loan for labor and materials.

You can use a DCSR loan alternatively, or as I love to do; buy homes using seller financing.

I did a simple Google search.Read this:What Is Material Participation?

Real estate is hard and needs commitment, but it's one of the most interesting alternative investment.Legal: it depends on what you need. 

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

With regards to traveling nurses, I was mentioning them as a potential tenant pool if I decide to purchase a STR, as an alternative or supplement to vacationers as occupants.