So, realistically, how much time do you expect a PMC to spend getting multiple bids?

We plan to spend the next 6-12 months continuing to earn and save, as well as nail down a final market we want to househack in.

That would be a helpful addition to your plan as you would further reduce your cost of living.Also don’t forget from that $600 you are planning on getting in cash flow you have taxes, insurance, maintenance, capex, and vacancy to consider.With two homes, you may want to keep that extra $20k as an emergency fund rather than spending it on a third property and then be left with no emergency funds.

who used this his entire life and build a net worth of over $1 billion by the 1980s starting with absolutely no capital!  

Hope to spend more time here in retirement.

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Under this rule, if you spend at least 100 hours on the property and no one else exceeds your time spent, you can qualify as materially participating.

Question that the “believers” don’t ask is “how much could I earn on the extra money I’m spending to pay down the loan faster?  

As I transition the property to a duplex + 2 ADUs, I am considering spending $10K+ to get another master meter put in.

.- How much money do you have to spend?