If you run a lending as business, your interest will convert to ordinary income and could be passive based on your involvement.

The STR is a lot more work and even if you get a manger, you may have to be involved.

With your budget, you could get multiple deals here in Columbus, but I recommend starting with one, getting it stabilized, then moving forward from there.

These programs very commonly involve restrictions and conditions on use, refinance, or resale of the property. 

It’s crucial to negotiate terms that benefit both parties, involve a trusted attorney and title company, and conduct thorough inspections and market research to ensure a solid deal.Good luck!

As a bank will be involved I am trying to think of the best way to structure this. 

MFA are involved and recommended Zeker - this thread has me second guessing proceeding with them - any further thoughts on using them? 

You are possibly setting yourself up for immediate failure.....there are too many moving parts and too much money involved to mess up this facet of the project.

When QIs get involved There is generally already a realtor or two involved. 

Just know the layers involved and be sure you are still able to complete due diligence on the sponsor.