I’m under the impression this is because if there is any rental income, it will go right to her care, not sure if she would lose the Medicare benefits. 

Aside from the Debt-to-income ratio and risk benefits you've already mentioned, it also just helps keep everything organized.

Trying to bend the rules will always come back to get you and could end up costing you more at the end of the day than any benefits you gain from it.

That is one of the most incredible benefits of being in the service. 

A restaurant or café with outdoor dining could thrive in this environment (there are not so many around the area), benefiting from the steady local traffic while also enhancing the appeal of the residential units.

Renting it out would let you keep the asset, earn some extra cash, and possibly benefit from tax deductions like depreciation.

You should consider investing in RE outside your retirement account as well since there are different tax benefits available.  

It is difficult to property vet these operators without learning on the experience of others - that is one of the biggest benefits of finding a Community!

I'm giving Marco the benefit of the doubt that he intends to keep his reputation and get this thing done right.  

I am willing to give up control to benefit from the experience and efforts of a good operator that I trust when I have the capital to deploy.The main reason for this has to do with time.