I spoke with State Farm, but they require plumbing and electrical panel upgrades just to consider reviewing my application.

The amount of downpayment requirement insures buyers having "skin in the game". 

Lenders will lend the lower of the amount between LTC and LTV.Do you require an appraisal and survey?

Yes, I share the same feelings and dont understand why the information and steps required is SO extensive! 

As you may have found in your search, there are lenders that will lend up to 80% of the appraised value on investment properties and don't require an appraisal.Let me know if you'd like me to point you in the right direction.

If we meet all of the requirements and choose to take bonus depreciation on an STR in 2024 (to take advantage of the 2024 40%), would recapture occur if we decided to change use in 2025?

I only charge markup on maintenance if it's a larger project that requires more coordination, supervision of the work, and inspection after completion.

A partnership requires three things to be successful - Experience, Capital and Time.It looks like you have the capital and experience but maybe not the time.I have my doubts about this working if you have a friend who has weak credit and a limited cash flow.

I was also going to ask if you'll have access to the property - many lenders will require an appraisal.

Even a single family builds can vary significantly based on site conditions and required structure/design.