Having a hard time to find anything remotely comparable to this home in CAHowever being a remote landlord feels like a tough pill to swallow hence the confusion. 

Spell out the complete agreement of how expenses, profits (or losses), and other responsibilities are to be split—put everything in writing.Do a background check on the partner to confirm there are no outstanding liens, judgments, or active lawsuits against them.Hope these suggestions help.

You’ll also want the last 12-24 months of profit and loss statements and bank statements to verify income and expenses.

.: I have just been notified that the house I am in contract with--that currently has tenants renting out--has been late with their rent for the last 3 months due to a job loss.

Bad location= lose money and sell at a loss after a few years of frustration.  

You bought this for 720k, then put in 463k, and are selling it at a huge loss for 751k?

Hi - are there any scenarios in which mid-term rental income/losses can be considered as active income rather than passive, besides when one has REPS status?

Just like you, she can do RE as a side gig and learn a lot more while she keeps her own nest egg going and her lendability strong with a regular job.You should loop her into a major document with all of the properties and all of the profit and loss and go through them one by one and talk about whether to sell or keep, and also base it on geography for her and your collective choice of management.

A seller not fully informed of these points may have legal basis for initiating a lawsuit against the investor/buyerFrom the buyers perspective any down payment, capital expenditures, etc may be at risk of loss if they can not pay off note IF it is called due.  

I am not sure I've ever seen where the tax writeoffs are different for STRs than they are for MTR's or LTR's in terms of writing losses off against your regular income.