If anything, just to gain experience that goes into a full rehab so we know how to communicate what we want with future GC's.

In Job CreationCOLLEGE STATION (Real Estate Center) – The Texas economy continues to outpace the U.S. economy in job creation.According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state gained 285,200 nonagricultural jobs from February 2017 to February 2018, an annual growth rate of 2.3 percent, higher than the nation’s employment growth rate of 1.6 percent.

If you do agree to a 10 year term, you will be gaining $630ish per month in principal reduction vs $345ish per month on the 15 year term. 

We have listened to a lot of the latest BP podcasts and are very keen on building passive income through rental properties.

I need to create a second income and passively seems like it would work for me.

BP is an excellent place to gain knowledge about the business and also for solid advice.

Note that this case was enacted before the passive activity rules were enacted in the 1986 tax reform bill and likewise before the 1993 creation of the real estate professional designation.But at the end of the day, if you're looking for primary authority in the code or regs saying, "You don't need to be a real estate professional to claim the home office deduction for rental activities," you're not going to find it.Your best bet would be to challenge the CPA as to why he believes the real estate professional designation is necessary. 

With short term gains in mind, I am concerned about the tax consequences.

In essence, I am simply the passive investor with 50% equity. 

RE requires you to be hands-on unless you are willing to be completely passive and give up control and a lot of $$ to a manager, partner, etc.