Also one is generally hyper local (at least for a one investor) and REITs are generally not.  

I wanted to create generational wealth, have a hedge against inflation with my $ and diversify my wealth, vs being 100% in the stock market.

I would never advise my customer to take a 5 YPPP considering we are have been moving into a downward trending rate market since 2024. 3 Year Prepay Max but if you plan on doing renovations or taking cash out on the ARV then a 1-2 YPPP would be Max.I would also advise buying the rate down before you decide to take a 5 YPPP using seller credit, equity or closing funds.

BTW: did you check local ordinances about boarding room rentals (which this would be)?

We’re considering reaching out to local hospitals to offer it as housing for travel nurses and doctors, but we’d love to hear any advice or suggestions on the best approach this?

If you want to network or ask specific questions about your local market, go to your local real estate forum and connect with investors from your area: https://www.biggerpockets.com/forums/86-local-real-estate-networking5.

I found this deal off market; it was my girlfriend at the time's uncle who owned it, and we pitched him the idea of buying it from him.

They may want you to put some kind of disclosure in the offer about buying under market value for the intent of making massive profits or something like that.You'll also want to know what kind of split your broker expects from you if any. 

Yes, I am aware that the current rate is way under market.

You're better off self managing or going with a local company with boots on the ground.