They have huge efficiencies of scale building the same floor plan over and over ordering the same packages of materials.   

@Michael Plaks is spot on - character wise, 1099-R income falls in the same "bucket" as a W-2 wage would be, thus to offset this income with real estate losses, it follows the exact same pathway (ST rental with material participation or REP status with traditional rentals), but since you don't have all your time sucked up with a W-2 job, you have much greater flexibility to hit those related hours thresholds under those paths as well.No idea if he's taking clients - but if you are looking for local(ish) and qualified in TX, Michael is also likely a great one to reach out to.

Here’s a quick breakdown based on my experience:Building new construction gives you full control over the design and materials, allowing you to incorporate the latest energy-efficient systems.

I hold two properties in an LLC, one property is currently a STR with less than 7 night rental on average and I provide hotel-like hospitality services and materially participate.

There are some opportunities (potentially) developing in the Sunbelt with a steady increase of inventory over the past few months, but we still have yet to see prices drop materially. 

We always choose low maintenance materials for rehab in our class C/B properties.

Here in GA it is a cash sale at the courthouse steps.With all the guru's and TV shows pushing "flip this house" and " a million mistakes were made and we still made money " newbies feel like they can't lose trying their hand at this stuff.In the entry levels flips new investors are overbidding due to lack of experience, construction materials are rising in cost, and contractors are in big demand so they are gouging on what they charge.

However, the flooring was just into the beginning stages of depreciation.In 2019 I did some rehabbing and replaced all flooring with waterproof LVP throughout having paid about $3586 for materials and installation.

The following year would be considered passive, so even if you materially participated, it would still be passive the following year and you cannot offset your W2.Is this accurate? 

We've issued non renewal notices at times when rents were materially lower than market.