A good turnkey company will have a high (and consistently tracked) occupancy rate and other good performance metrics so doing your due diligence when selecting a partner will go a long way to mitigating these risks.

This includes businesses that are located outside the city limits but do some or all of their business activity in the City.There are three types of Activity Licenses that you will need to select: Commercial, Non-Profit and 2-4 Unit Owner-Occupied Housing.

Any thoughts on location selection that you would pick if you were starting on your first rental property like I am?  

From there, I could select which ones I would like to add as a comp. 2.

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As a side note, I do not plan on becoming a hard money lender, but will selectively do up to four per year with this partner so I stay under the limit for my state of needing to be licensed as a lender.

Just keep it simple and average for the neighberhood you select.  

@Scott Groves, The intermediary you select will have their own exchange accounts where your funds will need to be held.  

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Since you're not starving, you can be more selective on which clients you work with.