How much is the rent and what is the $2.5K maintenance credit? 

A heloc in my view is best used to provide the down payment and rehab funds, rent, REFI, repeat.   

Rent some ozone machines or whatever it takes to remove the smell of cigarettes. 

So you are renting a place to re-rent it (arbitrage) to someone else?

Material Participation Activities:Property Maintenance: Engage in repairs or construction work on the property to maintain or enhance its condition.Contractor Management: Oversee the hiring and coordination of contractors or handymen for property-related tasks.Tenant Interaction: Communicate with tenants regarding lease agreements, inquiries, or property issues.Property Acquisition: Invest time in property search and evaluation processes, including visits to potential investment properties.Property Management Tasks: Perform activities typically handled by property management companies, such as rent collection or property inspections.Non-Qualifying Activities:Educational Pursuits: Time spent on real estate education or training programs does not count towards material participation.Investor Hours: Hours dedicated to investment analysis, financial planning, or portfolio management are not considered material participation.

John rents out the property for 40 days in 2020, and uses it personally 20 days.  

I do not have any 1 BR STRs/MTRs but I have seen annual STR rents based on bedroom count in both my market (San Diego) and emerald coast (one of the markets I have made offers) and the difference in the income is substantial between 2 BR and 1 BR.  

We use one of the units for ourselves and rent the other (3) for 30+ day stays. 

The disparity between home costs and rent costs are not even across the U.S.

1. houses are for like 350,000 - 425,000 in Minnesota with rent from 1,800 - 3,300 so if I get a property for 415,000 with about 5,000 in rehab and rent for about 3,000 is this a good deal and how do I know what a good deal is?