I'm considering buying a small single family home near a hospital in the Midwest to turn into a MTR, and trying to decide if it's worth the investment to furnish vs. going straight to LTR.

Quote from @Brandon Vukelich:If you buy a vacation rental in Hawaii, then you're tied to that location.

If it is, why can't you buy similar properties that you are renting with the money you make.If you get $200,000 annually(split proceeds with the other owner), you should be able to buy almost any type of property.

I asked which building inspector was the most thorough, wrote the most detailed reports, and which was the one he’d use if he was buying his own property.

@Travis TimmonsI had the same reaction as you did, but I held off on posting since I don't yet invest in STRs (I'm all LTR so far, and looking into my first MTR).Buying an STR "to offset income" makes me nervous as well...

Like I said I have the buyer ready to buy. 

If you are buying good properties you shouldn't ever need a property to carry another property.

So even if you had a buy out agreement negotiated up front and execute that buy out agreement, the bank would still require him to be guarantor unless something drastic changed on your side financially.The best scenario here would be to purchase and rehab the property using a hard money lender or bridge lender.  

Quote from @David Lambert: Hey David, I have experience managing properties for my mentor before going out and buying my first one.

Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc.