Because you are not changing the tax return that reports the activity of the property.But... the IRS holds the position that Husband/wife LLCs can only be disregarded in community property states. 

I am active duty military and plan to use the property for deployments/holidays for my family to stay near relatives until I separate in 4 years, then to use that property as one of several future investment properties.

If you have a competitive advantage that you can bring to your co-hosting/managing, then I would recommend looking for owners with properties that mesh well with your target resident.For example, if you are an active duty military servicemember with unique insight into what a servicemember is looking for, lean into that.

Criminal activity is not a protected class and actual values and opinion of values and their trajectory is just data, right?

LOLOkay, buy the lien at a discount, some might go at ten cents on the dollar, keep it active, collect later with interest.

We are actively managing two fund offerings, one focusing on real property (REO and off market properties), the other focusing on Pre-REO (vacant first mortgages).

Sounds like this could possibly be a Schedule C activity so keep self employment tax in mind.

I am actively expanding my STR consulting business!

A lease will not guarantee that your tenant will pay rent.The more active and proactive you are, the better everything will go. 

What's the activity level been like?