Structuring a 203(k) loan for your partnership involves some creative thinking, but it’s definitely worth exploring.

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

Does that same logic apply to "buyer agent commission"?

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

A lot of people under-estimate how much work is involved with owning real estate, especially if you go the route of self-managing.

i keep seeing:1. buy out of state rental in a solid neighborhood with long-term potential (just as you are recommending) but then...2. have one rough tenant turn that costs a couple grand, and3. give up on real estate investing, and turn on everyone involved in the transaction for not guaranteeing that sweet cash flow in month 1 lol, yea there is a decent chunk of investors who get really butthurt by that one bad unit turn and just give up.

By the way, 3 of the 4 have been rented since I owned the property so yes I suppose the 75% rule could apply then.

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

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

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!