They are essentially risk free, as they are government bonds.

However, the inspector mentioned that the 2nd and 3rd floors are labeled as "Artist Dwellings," though he wasn’t sure what that fully entails.He suggested applying for a special permit to present the space as artist studios or dwellings, with the hope of eventually converting them into long-term rental (LTR) apartments under that designation.

I have one contact that specializes in luxury and another that is more for "average" STR's.

It really is something special and a bit of a hidden gem. 

To navigate these complexities and ensure you’re optimizing your tax strategy, it would be wise to consult a tax professional who specializes in international taxation and U.S. real estate.

More trouble than its worth unless you partner with an operator that specializes in it and can provide the expertise, nursing contacts, etc. 

Do you specialize in the Landlord tenant laws for Maryland?

Connect with a real estate agent specializing in investment properties in your target areas.Good luck!

I believe that when they do move out that they will use the bond as the last months rent and I will have nothing to fall back on if there are damages.

Running the numbers thoroughly will give you confidence that you’re making a wise investment.Leverage Local Knowledge: Partner with a real estate agent or broker who specializes in multi-family properties in Austin.