But the value that can be added in high value markets is greater than in low cost markets.My last value add (purchased Dec 2021) was purchased off market at $2.25M and was appraised at purchase at $2.5M for the loan (so on purchase I "made" $250K). 

Yes, it's completely unreasonable to ask your applicants to pay more because you made a mistake.

-I believe that I will need to self-manage the property through something like Airbnb/vacasa/vrbo in order to meet the “Material Participation” threshold?

this is what my cpa said, "Your income above the limit which is less than 150K in order to take rental losses which again are limited" In your case, you are carrying forward the losses towards 2023 taxes as shown on page 5/95 of the return and as far as the income limit form 8582 page 83/95 has a detailed breakdown for you

Remember on a flip, it is not what you like but what the buyer pool likes . . . made those mistakes early on and you learn that you do what the masses will want.

Purchase price: $100,000 3/2/2 sfh in Gilcrease Hills Neighborhood What made you interested in investing in this type of deal?

I made my first million buying Preforeclosures and have dealt extensively in the field and teach the techniques.

Although I’d like to do a large dscr loan and get 4 to 5 three and four bedroom units, I’m likely goin to start with just one quality property in order to establish proof of concept to present to future down payment partners or private money lenders.

I’ve made a few claims and I’ve had nothing but good luck.

Over the long run though, we made a lot of money in stocks and lost a lot of money, but the swings were intolerable.