I always check active rentals to see what the competition is currently looking like for if a rental were to go live that month too.

I'm actively working through this process somewhat now so I can roll funds into a bigger boutique hotel project.

If these groups are significant, it suggests there’s pent-up demand that could enter the market when one of two things happen:Rates Drop - Rates fall to levels that allow more buyers to qualify for the homes they want.Buyer Expectations Shift - Buyers realize that 5% rates aren’t coming back soon and decide to move forward.Based on the increase in activity I saw in Sept and Oct in my business, when rates hit low 6s, I'd say my market has plenty of pent-up demand. 

These expenses can create a paper loss, which may offset other passive income or carry forward to future years.If you qualify for Real Estate Professional Status (REPS) or actively manage a Short-Term Rental (STR), the losses can be applied against your active W-2 or business income, reducing your overall tax liability.

This would help us benchmark and explore simpler alternatives while understanding how complex the structure mentioned above truly is.I assume they are not actively managing their business?

Is it good or bad with a lot/little REI activity?

While it is true that the time of year can influence market activity, as others have mentioned, there is usually a trade-off depending on the season.

I’m not looking to be an active/public realtor, just need a place to hold my license.For context, I currently hold an active HI real estate license in good standing and have strong networks on both Molokai and Maui.

For example when someone wants to have financial freedom and spend more time with family, but then sets a goal by creating a heavy active income stream that involves their personal involvement daily.

This will work for ordinary losses, but not from negligence or unlawful activity.