Definitely get a complete understanding, seems like any repairs they handle or hiring someone will be high

I would chose a good market in the midwest that meets your criteria for cashflow and appreciation with $100k barrier of entry.

So those fixed costs, like calling a plumber or replacing a fridge, are going to cost more, as a percentage of your rent, to handle.  

Any suggestions for how to handle this and still turn it into a rental (it will cashflow) are greatly appreciated!

The real trick is making sure you’ve got a handle on who’s active in your target area.

Consulting with a tax professional is advised to ensure compliance and proper handling of deadlines.This post does not create a CPA-Client relationship.

Biggest thing here is they wants a house big enough for 2 separate living areas and house cannot have more than just a few steps to entrance and hopefully rear entry/etc.

Ants, spiders, flys, and other ordinary pests are often brought in by tenant behavior, so it's reasonable to expect them to handle with removal.Bed bugs are 100% the tenant's fault because they do not travel from home to home on their own; they have to be brought in.

But most likely you are going to have to find something else.What @John Underwood was getting at is that co-hosts or other managing people are very close to the property to handle all the issues.Also...

So if I was dealing with a seller who was insisting on handling the transfer this way, I would be wondering what the seller is trying to hide... and I would figure it out.