I suspect without money and active participation as LP, you cannot legally do what you suggest.Have you seen the underwriting?  

While Im not currently seeking distributions (we are in series B shares - those that participate in the upside and "may" accrue), they have made distributions and we are simply building another cash reserve.

Overseeing tradesmen while they work on your properties sounds like material participation to me.

I know that's not the news you want to hear but perhaps hearing your story will lead to other helpful advice from forum participants.  

So again, to be a passive participant is hard for all the reasons you note and more.  

@Glenn McCrorey  - Great Job Buddy and very proud of your accomplishments!

For tax purposes, it’s about whether you pass the 750-hour rule, the 50% rule, and meet the material participation requirements.

For our next play we want to get into a single or multi-family, and preferably participate in what seems like a booming market in Florida. 

For the material participation test, the easiest way to get it is Via the 100 hours and worked more than anyone else.

1.Activities That CountTo meet the material participation criteria, you must log your hours in a detailed and ongoing logbook throughout the year.