This is great information on how to use short-term rentals to offset active income like W-2 and business income at tax time and how you qualify for doing that by documenting your material participation in managing and setting up the property.

Looking forward to learning from you all and this site!  

Here's a framework that you should know for tax planning:The further you can push your taxes out, the smaller they become.The time value of money shows us that a dollar is worth more today than 20 years from now.Planning is used to kick the can down the road, and make sure there will be available cash to pay the tax!

This is a very broad question. 

Lived in the upstairs unit for 3 years until I got married and bought a house What made you interested in investing in this type of deal?

Looking to start into real estate myself.

I think we can promote in this posting is only for Real estate questions. 

The less conservative is: operate as a finder or co-GP but with very good, conservative counsel to keep everyone in the clear.I recommend you read up on "disgorgement penalties", and make sure the sponsors that are recruiting you have done the same, before jumping into this co-GP/Finder ship.

There is only a small fee to accept the offer and make the deposit into a checking account.

He wants to help me out and walk me through this process and give me a good property.