These properties are now rented as long-term rentals, and we plan to expand our portfolio while also branching into short-term rentals.Looking back, I realize how much my current knowledge and experience could have fast-tracked our success.

I just meant to say that it's our next goal to build that up, having just gone on a spending spree on fixing up both properties in a short period of time.

In short, you ride the 'coattails' of the previous owner's taxes for the first year.  

You're going to have to scrap like crazy to break even - think rent by the room, short term, mid term strategies that require more work.

A short-term rental with a stay of 7 days or less + Material participation =also non passive.

As I see it, the only ways that real estate pays you well in the first 3-5 years is low to no leverage or a strategy that requires more work (short term rental, mid term rental, rent by the room, etc.).  

While this is indirect, a less experienced sponsor is not going to be able to attract capital like a seasoned sponsor, regardless of securities being exempt or not.  

Overall, everyone has been nothing short of friendly and helpful. 

It's the conclusion you came to before you wrote the post I know but bringing up the challenges might make you realize that you might have to offer a heck of a good deal to attract a potential partner.

I have owned 4 short term rental in those markets.