I have the real estate and construction knowledge and he has more money so it's a mutually beneficial partnership.

If I didn't want any control, I'd just invest in a mutual fund or REIT.

As for investing it into a ETF or mutual fund, it may go up, or it may go down so if you're planning on this loan being the key to start your real estate investing have a backup plan in case the worst happens.

Hi: Has anyone worked with this company or know anything about them? I found a foreclosure here in Virginia that they had listed. I've called and talked to someone there and it looks like they are bird dogging foreclo...

I am not sure of the purpose or if this would be beneficial for me now. 

In my case, I believe that it would actually be beneficial for me to do so.  

We would love to connect with anyone with local market experience and develop a mutually beneficial friendship. 

That being said, with the 203K loan available, I assumed that homes in need of a little TLC would qualify under the FHA, but i'd be interested in hearing more about the specific criteria of the 5% conventional, and how it could be more beneficial over the FHA if you'd be willing to elaborate a bit. 

As long as you do your due diligence and stay up to date on your property then having a property manager can be really beneficial.

I do think it would be beneficial if you did MTM instead of a yearly lease because, as you said, it protects you instead of the tenant.