Our team discussed multiple investment options with him, including new construction homes in nice areas that likely attract better quality tenants.

In terms of the second scenario, the upside I see is the option to get a different kind of loan (say, FHA with a lower down payment and other assistance programs for K-12 educators like me) since I'd be getting a new primary residence instead of a second home.

Try to narrow down your options to the top 3-4.

Eugene sounds like a great option with the university draw, and Portland has some solid opportunities too especially if you're leanign towards the MTR/STR route.

Any of the above kills the STR loophole under this "substantially all work" option for material participation.Is there a way to qualify if all my outside help was a cleaning lady for 2 hours?

Go to the source.

Other option is to continue down the self storage facility path, do nothing, or list it. 

The options we have are: - Do nothing and keep monitoring the crack.- Seal the crack only from above and hope it stays static.- Stabilize the foundation with helical piers on the exterior. 

If you ever want to talk strategies or options feel free to reach out I can go over some loopholes and tips.  

If you cannot get approved for a $700k loan, then work on that, but saying I don’t know how to do it is not an option.