2- If I employ a full-service property manager to handle tasks such as cleaning, maintenance, booking, and guest communication, while I focus on business aspects like property search, renovation, decoration, bookkeeping, and supply procurement, would this still qualify as material participation or could it pose a risk?

One question I now have is the following: do states typically allow you a Schedule to deduct expenses like maintenance and repair, or is that just a federal thing? 

I called them today because I was tired of paying maintenance fees for my CA LLCs and wanted  To dissolve them.  

Just have good insurance and maybe an umbrella to cover it all.Keep up on maintenance.

Sure, 639 Plymouth Rd had its issues – angry tenants, neglected maintenance – but beneath that, I saw opportunity.

As i'm sure you are aware the strategies and methods of construction/maintenance and management will differ from others. 

It's under $500 so not an extreme expense but I argue that it falls under the NNN maintenance purview, responsibility of the tenant.

Another option if this is strictly for investment purposes, you could try to go DSCR. we have one lender that will allow for 1-4 units (inv. prop solely) who will go as low as 620 fico, but your LTV may be limited to, say, 70%. qualifying would be based on the rents received, not off your $100k income. there are options out there, keep working at it and get a 2nd opinion even on a full-doc loan. hope this was helpful to some degree!

I have very low turnovers and sleep like a baby by being a little lenient here and there.

However, for a landlord who has things together, they are better off budgeting for capital expenses and maintenance and having some reserves either in the form on savings or even an open line of credit to access in case a significant issue arises.