Yes, because Private Money infers that you are in a negotiable deal where your project can be outside the box and you can negotiate unique terms with a private individual - that - or a big box lender with strict rules and guidelines. 

For STRs, material participation rules apply, and STR income is treated as non-passive, allowing losses to offset active income.This post does not create a CPA-Client relationship.

Have you read the TREC rules?

Start by researching areas that fit your goals, understanding financing options like FHA loans, and using the 1% Rule to evaluate deals.

For tax purposes, it’s about whether you pass the 750-hour rule, the 50% rule, and meet the material participation requirements.

Asking in the correct forum will get a better response.Read the RULES!

I do believe we have the greatest, fairest, and most equitable system when everyone is being honest and playing by the rules, and acting in an ethical manner.

I plan to hold unless the rules change.  

Rules for contractors NEVER use your money to fund a customers project ( unless you hold first lien position and charge interest )If the money stops , the work stops .Put everything in writing .

They actually failed to pay taxes in 1983 as well according to the follow up article below. 2 years later in 2017 the County reversed the sale voting 7-4 against “these out of town speculators trying to make a big payday” and for the fine people of their district. https://www.sfgate.com/politics/article/SF-supervisors-to-vo... well if the county sups could unravel it then the rules have certainly changed from my days of buying CA tax sales in the 60 70s and 80s.. once they went to bid 4 assets and away from the live auction the screaming deals were done.