Take you pick.Most questions revolve around Material Participation, and tax filing compliance.

You can break it out by general RE activities and material participation.

Quote from @Jimmy Lieu: Quote from @Andrew Syrios: The BRRRR strategy is tough these days (I even wrote an article about it that goes into more detail a little while back: https://www.biggerpockets.com/blog/beyond-brrrr-taking-advan...)In short, high interest rates as well as labor/material costs makes it hard to buy a property with debt and cash flow. 

After finding outlets and switches placed in bad spots and plumbers who wanted to argue about the use of Pex manifolds my subsequent projects I literally would pound all the electrical boxes and label what they were for and buy all the the materials myself. 

No labor + materials.  

Perhaps you have coverage for the replacement value BUT the insurance company when calculating the replacement property uses modern building materials like drywall but your original house had plaster which is much more expensive.

With myself as an operator I would offer the following: underwriting the deals, a detailed scope of work, a detailed material list, the labor, and the management.  

On the flip side, some challenges include rising material costs, contractor delays, and unexpected permitting hurdles—so having a solid plan and reliable team is key.Would love to hear more about your strategy!

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

They must satisfy "material participation" test for their STRs to utilize the strategy.