Then you need to materially participate in the activity, here are the tests to meet MP: https://www.investopedia.com/terms/m/material-participation-...I recommend tracking your hourly diligently in a material participation time log.

In this case, the material cost AND install costs will vary, so having an idea before you even meet the contractor is important.  

The costs involved are about $100.000 all in (permits, engineering, architects labor , materials ) - I’m thinking that would be a better long term Investment than another SFH . 

The materials are outstanding and my understanding pre covid the networking and in person classes where very beneficial .

Zoning, subcontractors, mother nature, P/I during construction and rent up, your loan doesn't get "fixed" until after construction, material inflation, etc, etc, etc.You have taken most of the risk off the table with family financing and family construction. 

I am assuming you would be paying for materials and replacement appliances, etc... so $1000 per month for labor to take care of 5 mobile homes should be seriously looked at down the road.

That it has a strong "base case" cash flow from the house-hack, and that it has multiple avenues for material upside, combinining live in flip and house-hack concepts. 

My wife will materially participate in the business and I'll provide the financial backing.I've talked to a couple local CPAs and done a fair bit of internet searching on legal entity setup for my situation, but haven't been able to get a straight answer.

We've received a few quotes, but most are over $30k per unit.I've seen several posts on Facebook and Instagram BRRRR groups that do medium rehab for $8k-$14k per unit for both labor and material costs.

If you want "books, binders and educational materials" from real estate gurus and am willing to pay for them try ebay.