Are there concerns like location, zoning or land use, or is it simply about passing the inspection if it's a residential use?

All very unlikely.Also, I'd be highly concerned about that 18% vacancy rate you'd be buying into!

I am concerned about theft during and after renovation so a policy that can cover that would be of utmost importance. 

Lots of money to attorneys, lots of time lost and you still have a house that needs fixing.One word of caution, be careful of who you take advise from concerning the HVAC and drainage issues.

Some concerns I have been thinking about:1.

Concerns & Risk Mitigation:- What are the biggest risks you look for?

One of my friends is also thinking about that but what I am concerning is how about the vacancy rate for the STR and MTR? 

My biggest concern other than the closing costs was that if an FHA buyer tried to come buy it my understanding is they would need to wait 90 days from when I bought it and I think it would only take about a month to fix it up.

In fact I think truancy is a real concern. 3% of rent which if it was $2000/month or $24k/year, a fee of $60 or $600 would not be a premium, rather a deep discount from the STR fees or PM fees I hear coming from Bullhead City, AZ or LA, where they range anywhere from 10% on up.April did you use Nomad after all? 

He recently emailed me that he was done discussing an issue that concerned me, and he didn't want to answer any further questions.