We’ve typically used our own crew for most of our projects but everyone is tied up right now, which will definitely alter things.

You need to insured the building items you own (called Improvements & Betterments or Additions & Alterations in many policies).  

In general, landlord policies cost about 25% more than a homeowner's policies.Neither one of these may drastically alter your decision, but want to make sure you have accurate numbers to work with.

The mortgagor discovers the 'sale' when loss payees on insurance are changed/ altered so there are some nuances to doing it. 

For that project, the biggest alterations I made were a new kitchen, new light fixtures, floors, an outdoor privacy screen and I converted a half bath into a full bath.

The areas where general contracting work (non-specialized work, with specialized work being electrical, plumbing, HVAC) could be done under what was commonly referred to as "interior or exterior alterations" but did require a permit, then I would gain a General Contractor's license in a LLC's name so that I could gain the permits in that local area.

That really is a life altering amount of money as a young investor.

Lots can go wrong with your type of scenario… like what if the purchaser alters / destroys the property before you get all your cash and then defaults.  

I will continue to discuss this with my business partners as it seems we have some obstacles to work around and alter our strategy. 

I recommend simply telling them that the property cannot be altered for the protection of both parties and that the property is offered for a one year lease term.I'm both a Broker and an Investor...often times that gift horse is really something quite the opposite.Best...