Even with a significant 50%-60% down payment seems like the purchase price would have to be in the 170-180K range, which is a tall ask for those areas in 2024.

It's not that it would be considered passive, it would be considered investment money.  

Even if the tenant can’t pay, it sets the expectation and documents the issue.Small Claims Court: If the tenant refuses to pay, you could take them to small claims court, where you can seek repayment without needing a lawyer.Security Deposit: If the tenant has a deposit, apply it toward the damages.Consider Eviction: Given the arrears and damage, eviction might be a last resort to prevent future losses.Talk with your property manager to create a plan that minimizes further risk.

It would be fantastic to exchange advice, share our experiences, and help each other succeed.

You will be best as a real estate investor when you feel your best as a human.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.

Looking to balance Keeping It Simple and being on top of things.For years, we used Ally.

The only possible downside could be the issues in dealing with the tenants that come through THD.

Any remaining funds after paying the mortgage can be kept by the property owner. 

There could be other conditions of course, but that would be something easy and not expensive.Either way, that extra week is some nice revenue and I wouldn't want to miss out on that. i would accommodate them for sure.