Based on your first fix/flip, it sounds as if you don't have any issues doing moderate rehab.

You need an income that meets three requirements:Rents increase faster than inflation to offset constantly rising prices.It must be reliable; it continues even during economic downturns.It must last throughout your lifetime.These are all long-term requirements, so the current interest rates are not the major issue.

I have no issue with the rust belt cities.

My underwriting would have this large negative cash flow for 7 years.I would do a thorough underwriting but want to show using quick math the issue so I will use the 50% rule.  

That does not mean there aren't issues to consider.

Are you aware of some actual legal authority that validates the IRS opinion on this issue?

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

Despite the program's claims of providing exceptional training and support, my experience with Kristin has been far from satisfactory.First and foremost, I find it necessary to address the issue of non-payment.

An other advantage of paying with credit card may be that you will not have to send the provider a 1098 tax form (only an issue if the total yearly amount is over $800). 

But it's rapid price growth and sales activity could indicate a more volatile market, with the potential for corrections if demand slows as affordability becomes an issue.