Thanks Nicholas - the funding isn't really the main issue, as I could really pay cash if I wanted to.

I almost typed "independently" but there is a nuance stopping me from that, the very issue we're discussing.If the two of you do not have other STRs, as seems to be the case, you only have this one STR to draw the required hours from. 3 material participation tests to try:1.

(The upside of real estate, is that someone else pays the majority of the cost while you get all the appreciation when you sell).Good luck. 

@Dwayne Clarke going to take an educated guess that what you were cautioned about is buying someone else's problem.Over the last couple of years, many OOS investors bought a bunch of SFR and MFR properties with LITTLE due diligence.Many were sold Class C & D properties that they thought, or expected to perform like, were Class A or B.Once they figured out what the properties really were - via tenant nonperformance and never-ending maintenance issues, they looked to sell them.If you know what you are doing, their loss can be your gain.If you are new and do NOT know what you are doing, then you'll just be the next "sucker" that gets taken.

They have picked the best companies to integrate with and we haven't had any issues! 

Thank you for your contribution, greatly appreciated.In the 100% scenario, the seller would be 1st position lien holder - in the 20% carry they would be 2nd position subordinate to the bank debt, which is a major difference.

Also, a 3-month try before you lease may be the issue, tenants are using it as an MTR, it gives them far too much wiggle room, and that short-term turnover can start hitting you in the pockets pretty hard...With that said some incentives you can offer are the first and last months rent-free for a 12-month lease.

I recall asking previously and they refused to provide it because of privacy issues.

However in the past I've done the majority of the physical labor and have grown weary of this part of the process. 

After a couple of months of trying to resolve the issue I requested my money back for the printing and the money ($5600.00) I spent on mailings.