Direct ownership is active, with active-level tax treatment
Buying and operating a short-term rental directly is an active investment -- even with a manager handling day-to-day guest communication, the owner typically remains involved in decisions and, if pursuing the material participation tax benefits, needs to document real involvement.
This structure offers the most control and the most potential upside, along with the most responsibility.
More passive structures trade control for lower involvement
Syndications, funds, and co-investment structures exist for investors who want short-term rental exposure without direct operating involvement, generally in exchange for lower control over the specific property and a share of returns going to the sponsor or manager.
Neither approach is universally better -- a direct, done-for-you acquisition suits an investor who wants the tax benefits tied to material participation and is comfortable with a hands-on structure that's still largely managed on their behalf.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.