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

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.

@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.

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.

Looks like one valley + five stacks/vents to flash = materials about $80.  130 ft of drip edge flashing at $50.  2 coils of nails at $60.  

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

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. 

I’m considering using materials such as wood, PVC, conduit, or metal pipes, combined with canvas, tarp, or plastic for the covering.

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? 

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.