I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

That's what I mean when I say fraudulent folks coming into this space.This did not materialize as much as I thought and I think it was cause everyone anticipated a rate cut, thus such a fund wouldn't need to be made.

The problem is you can't afford to properly make repairs when you are dealing with the lower tier properties and go with the cheapest bids doing nothing but putting duct tape on issues that will become recurring or believing you are making the repairs correctly but use inferior labor and materials because its all the property can absorb cost wise.  

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

The only time its worth spending extra money on materials that will be durable aka tenant resistant.

Appreciation is driven by demand outstripping supply, and cost of new supply. 

For example, the iconic Malibu waterfront homes were built directly over the water, many by variance, and assumedly will not be permitted to reconstruct, certainly not with the same materials or attached architecture.

The sale and acquisition closing benefits are real and material.  

And does the person doing the labor get paid or only the materials paid for by the partnership?

Columbus is the strongest growth market out of the Ohio cities you mentioned, driven by significant business expansion.