Has anyone else gone through this process of rezoning and can provide me with some links/guidance on the process? 

The seller will be providing a credit through escrow to pay for the repair at closing.

For example: Say I find a property that is $30-40k and needs another $30k in work.

Im a local, i can find you properties and negotiate with the seller for a discount.

The key factor is ensuring the property qualifies for favorable tax treatment by adhering to IRS rules regarding short-term rentals and material participation.For the 7-day rule, the IRS requires that:The average guest stay must be seven days or less for the property to qualify as a short-term rental.If the average stay is 30 days or less, you must provide substantial services similar to what hotels offer, such as daily cleaning or concierge services.Regarding material participation, to further classify the income as non-passive, you must meet one of the following criteria:You spend more than 500 hours actively managing the rental in a year.You manage the business yourself and spend at least 100 hours, with your involvement exceeding that of any other person involved in the rental.Please note there are actually 7 ways to qualify, the above two are the most common.

You probably have heard to join the local REIG as what you will find from the courses advertised everywhere anymore is that they offer general information that in many cases does not fit your market or state requirements. 

If you can't find what you're looking for, try the Bigger Pockets Fileplace.

Hi Lygia, you can definitely find comps and estimate MTR rental rates with Airbnb and Furnished Finder.

Then, when you find an end buyer, you would just sign an assignment agreement.Fee free to reach out with any questions 

When you sell a property, all accumulated passive losses can be applied, provided it’s a complete disposition