I feel your pain with the turnover and vacancy but that comes with the territory.  

It was new territory and I was broke,  but glad I jumped in.   

Before we had the LLC, that room was basically unused; so we truly can claim that we use the office exclusively for business related to the rental property.Having said that, we know we are entering unfamiliar territory with the home office reimbursement, hence we are asking for help. 

@Billy Daniel Depending on the size of the raise and the number of investors, you might be stepping into syndication territory. 

If nothing else will work out, I think leasing the second and third floors together is a solid backup plan - that would still get the property into cash flow positive territory.

You can get into 4-plex territory in landlord friendly markets for what you are planning on spending on a TH4) I notice that one of your concerns is 'enough time to manage'... have you factored PM expenses into your calcs in case you want to pass management off?

So basically i won't have any legal presence on any of the documents (deed, title and mortgage) but just another type of agreement?

Automated move ins, added buildings, added web presence and marketing, added yield management.

I'm definitely in unchartered territory here. 

The presence of any of these conditions does not automatically mean you can not get coverage but depending on what it is, your cost may increase.