To be clear, I’m not afraid of IRS as all of my records are straight, but I’m not a fan of Apts.com using this strategy, so I will start looking for alternatives.

If not, are there any alternative strategies that I could consider to get this done as a long-distance investor?

No - Chesky is wishful thinking. a) Most people are not nomadic in nature b) It takes a lot of money to travel and stay at Vacation Rentals (the cost of the rental, food, auto and gas, etc.)For most people, STR trips will continue to be a nice little getaway alternative to traditional hotels....although I believe their usage will grow a good bit anyway.

Another alternative if your property is close but doesn't appraise for the price you want, rather than bringing money to the table, you can also accept a higher interest rate and the lender will pay you.

They do fund 100% of the rehab, but they won't allow you to draw until you can prove the work is done, so if you need to pay for materials for your contractor to get started, that will be out of your pocket.

Reaching out to the more experienced BP brain trust for ideas on the down payment or other options and alternatives. 

We specialize in residential demo (decks, sheds, kitchens, bathroom, carpet and flooring removal), junk removal (garage clean outs, basement clean out, hoarded houses, etc), and we haul materials (gravel, sand, stone, rock and building materials).Please reach out our facebook page at Done Right Haul Away LLC. 

From your experiences, what are some creative alternatives I can use to get this deal done?

@Joe Villeneuve what would you recommend alternatively?

What is the difference between REPS hours and material participation hours?