As M-MTax said, the number of days has nothing to do with Schedule E versus Schedule C. That is strictly based on if "services" are provided to the tenants.
In answer to the question, if it is short-term rental on Schedule E and you Materially Participate, you are correct it is non-passive. Unfortunately, the step-by-step interview is NOT set up for that. The only way to do it is to use the Desktop/downloaded version of TurboTax and go to the "Forms" to get to the "Schedule E Wks" and mark the "Other Passive Exceptions" box. Or use another brand software that is set up for this fairly common scenario.
