Congratulations on your upcoming retirement and thank you for your service!

Are they a pain to service compared to standard machines?

https://www.ownerrelations.com/services/fractional-ownership...

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?

These expenses may include property taxes, insurance, repairs, maintenance, utilities (if paid by the owner), property management fees, and vacancy allowance (an estimate of the lost rental income due to vacancies).Calculate Net Operating Income (NOI): Subtract the total operating expenses from the gross rental income.

Perhaps have the tenant move out during the repairs.

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? 

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how about costs associated with a renovation or repair needed?

Clearly, I am disappointed but will take the time once they are out to fly up there and do some much needed repairs to the home before renting out again.