Trustin your PM partner is important and they will follow your lead, so don't expect them to provide you with your business plan. 

See responses to your questions below: Correct, California is uniqueTo qualify for REPS you need to meet a number of criteria, including (but STRs that meet IRS criteria generally don't need REPS to leverage tax benefits): More than 50 percent of his/her time working in real property businesses; AND, More than 750 hours of service during the year.

If I put myself in the shoes of the outside partner/investor friend, I would be very concerned because: 1) unclear and/or potentially conflicting business plan, 2) even with clarity in the BRRRR business plan, unclear in the viability of pulling it off with these market conditions, 3) the chances of dispute seems very high, especially if you're going to live in. 4 years ago, I went through a  similar thought process when purchasing an investing property with mainly my family money, while considering an outside investor to rehab for higher STR ROI... 

Dig and remove around 200 square feet of an old concrete driveway, frame and lay down the concrete (concrete will be ordered from concrete supply business) and complete a brick ribbon around the driveway.

If the handyman can’t get those things done in that amount of time they have no business being a handyman.

Assuming you could take out a couple 100k you would have the buying power to start a cash recycling business (brrring or flipping).

You have to be a serious individual that takes care business.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity. 

Quote from @Bruce Woodruff: @Jesse Valdez you really need to get out of the landlord business.

This is why so many companies are leaving states like California.Pro-business environment: Companies want to focus on their core business, not fight anti-business policies.Significant infrastructure: Companies favor cities with substantial airports, freeway systems connecting to other cities, and more.