I know a reputable CPA who focuses on real estate and actively participates in REI himself. 

That is a win and is usually way higher than the old landlord rent.Once you show them data and allow them to be a participant, you are working together.

If they reject the offer, then I would play hard ball by enforcing every term of the lease and ensuring they participate in showings or face termination.

I did a simple Google search.Read this:What Is Material Participation?

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

Practically what you will earn from participating in tax sale auctions is an interest rate of return.

It works incredibly well for real estate because it offers flexibility, liquidity, and allows you to make your dollars (cash value) more efficient by allowing them to work in two places at once (in the policy itself in participating policies by earning contractually guaranteed interest and dividends as well as in the investment you leverage your cash value for).

Any active investors with good track record you'd recommend that would allow someone newer to participate in the deals through help raise capital?

Other than maybe investing in a REIT, very little of it is really passive, especially since a lot of the advantages of real estate relative to other investments revolve around the fact that you can *actively* participate in some fashion and end up with better returns than other, more passive investments (a mutual fund, for example).

This is why traditionally they only let the rich participate, no one cares when millionaires lose the 2nd home because of bad investments.For non-accredited we are in uncharted territory.