Yes, today with the high prices and high interest rates it is harder , but still not impossible.  

I think this tenant is starting to come across as high maintenance and this was just another thing piled on top of other things.Nearly every day she has asked me to do something. 

It is very high chance that I will be negative cash flow due to increase property insurance and HOA. 

Taxes are fairly high so that should be taken into consideration.

I think the price is too high, but it works perfectly and doesn't require much thought.

Unsuccessful Property Search: Hours spent on unsuccessful property searches, where no purchase is made, do not qualify.On-Call Periods: Instances where you are on-call but do not actively perform work do not count towards material participation.Meeting Requirements:Maintain Detailed Records: Keep accurate time logs and records documenting your involvement in material participation activities, supported by evidence such as emails and calendar appointments.Seek Professional Guidance: Collaborate with a qualified tax professional to ensure compliance with IRS regulations and to optimize your material participation strategy.I hope this high-level overview gives you insight into what activities matter and ones that do not.

One idea that I have been pondering is buying a plot of land in a relatively good location with high odds of appreciation then placing a prefab house on top of it.

We highly recommend though, having a local expert that you can run addresses by, to confirm the target property in on a good block before signing a purchase contract.

The lot is 3x the size of the other option and the home has very high potential for value add.

When you pull their credit, go through each item and check to see if they continually have high credit card debt, if they have any 30, 60, or 90-day late payments, ensure they don’t have any judgments or collection items, and see if they have any large payments that will hinder their ability to pay rent.