Material participation might involve managing properties, handling leases, or overseeing maintenance—activities that are more hands-on than those of a typical passive investor.I recommend doing some tax planning and see what options you have .

I don't manage any apartments any more so just 1 & 2 for me.

As the agent for the seller, he has no obligation to provide that information to you unless he suspects fraud or material misrepresentation by the seller. 

Admittedly, finding direct comparables has been challenging due to the unique nature of our family's home, but these figures give us a good starting point.I've taken the proactive step of having a property manager conduct an inspection, and preliminary feedback suggests that the renovations required might be relatively minor, pending the final review from the contractor.

My wife and I both work full time and as of last month I’m managing my own properties.

Live where you want to live and invest where the numbers make sense...You should look into markets with a higher rent-to-price ratio, you will probably be beating that 10% even with management

The business is the hospitality side and how well the vacation rental is decorated and managed.

Both my management company and the homeowner were sued.

I like that structure if your LP's are good with it and the project supports those numbers.More common syndication structure is 2% acquisition fee, 2% asset management fee, 7-8% preferred return, 70 (LP) / 30 (GP) split.

Hello Patrick, there are a few things that need to be considered to turn this into active income such as length of average stay, hours you spend managing property and services you provide.