We like the short-term rental idea because we could stay at the property ourselves when we want - summer break, spring/winter breaks, etc.Our budget will be right around $1M or less ideally, and we would like a short distance to the ocean.How likely is it that we could find a property as described above and have it cover or come close to covering the mortgage? 

Companies that know what they're doing don't get involved with the race to the bottom. 

In terms of distance I will be about half hour away so not bad at all.

Lastly more to my point - I thought you worked for a MF syndication in the past that I was not sure but wanted to mention and that you are not just someone coming off the street having never been involved in a deal (unlike a lot of others).  

I think it speaks volumes regarding your care to the situation the heir is involved in.

Quote from @Garry Lawrence: I need advice on a serious situation involving a property I’m about to buy.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity. 

This allows you to test all the systems and the people involved.  

It may be easy to rectify, maybe not, depends on your jurisdiction, the issues involved and the City's stance. 

I just want to be involved and learn more so I could achieve more eventually.