@Zachary YoungBased on my experience, finding affordable cities with strong cash flow potential is definitely possible with the right strategy.

Most aren't financing, their flipping , so no inspections are generally needed.

Depending upon whether they are a bank or a trust company, custodians are heavily regulated by the IRS, DOL, possibly the FDIC, State Banking Commissioner, and maybe the Comptroller of the Currency.

Don't be confrontational about it, but let the tenant know that this is something that has to be done and you still want to work things out with them as much as possible.

Calgary is gorgeous, I try to get out there as much as possible when I'm free.

Maybe there's an angle for seller financing or some other creative approach to get the seller the total return they want over time, but it's hard to say without actual facts and data.

What would be my best route to take if we need additional finances?

I found some articles and old forum posts on BP last night that discussed problems with financing and insurance for this arrangement. 

And could even get a second home loan if doing traditional financing.

Very excited about how well they are doing.. they are not holding but I am helping them make 250 to 400k in cash a year or more by financing thier deals for them.