The 1 mile income radius could be misleading in either way to the positive or negative if the property is on the right or wrong "side of the tracks" so to speak.The 80% occupancy, if it's solely due to the mismanagement of the current owner could be an opportunity. 

Technically it would be best to get a C Corporate or S Corp. to flip properties and since you are considered a dealer if you do several properties a year and this could have negative tax consequences in an LLC.

In the example you outlined and in the case of what a lot of people are doing right now (super high LTV underlying, negative equity on wrap, 100% financing for the buyer, low note rate, etc), then no, this wont work, primarily because whomever created the wrap note is either an idiot or a fraud.  

More about the concept of STR tax savings is here:https://www.biggerpockets.com/forums/51/topics/1122635-the-s...As to one CPA saying that your losses would still be passive, we cannot comment.

Just responding to your negative comment.  

We see threads all the time about people losing money and how after they add expenses and vacancies, etc. how they go in the negative.

In some cases, after crunching the numbers, the profit margin was so slim—or even negative—that I had to pass on some promising opportunities.Here’s my situation: I currently own two properties—a primary residence and a rental property—both of which have substantial equity.

Just remember: most negative reviews are written by problematic tenants.

Indeed, she goes into great depth describing the negative impact on both the residents of parks and the community at large.  

I do not care what the source of the return is  Historically the highest return is via a value add and appreciation and is more so recently due to the recent rate increase versus earlier this century (before 2022).However, most new RE investors cannot handle extended periods of large negative cash flow.