This way, they’ll have a vested interest in maintaining high standards of management.To truly understand property dynamics and support the management team, I recommend spending time on-site.

.- Maintain proper records, such as contracts, settlement statements, and promissory notes.- Additionally, you can track income and expenses consistently using software or spreadsheets.If you track everything, you could show a loss and use that to offset other earned income (such as a W2) which will net you a bigger refund.

Quote from @Grant Francke: For those with using Buildium for property management software, do you use Buildium's public site or do you use a website you have made and maintain?

To thrive in real estate investing, you must maintain a firm grip on your finances.

Banks, particularly smaller banks who provide real estate loans are increasingly focused on their borrowers maintaining depository relationships.

Investing in NNN lease (Walgreens, Dollar General, etc are your tenants) is also fairly passive, but you maintain a bit more control. 

To thrive in real estate investing, you must maintain a firm grip on your finances.

I don't want to give the impression that we don't maintain.  

If not, you could always maintain 2 separate IRA accounts, one self-directed for private lending, and then another for your traditional investing.

STRs also avoid automatic classification as passive if rented for seven days or fewer per tenant.To maximize tax benefits, maintain detailed logs of all hours worked on activities like tenant communication, cleaning, maintenance, and marketing.