The client can distribute proceeds through a private agreement without involving the title.

Just learning my options at this point. 

I think it speaks volumes regarding your care to the situation the heir is involved in.

You have options!

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

In addition, you still need to meet the IRS requirements for material participation in each property or elect to group themBased on what you say it sounds like it would be challenging for you and your wife to meet these requirements unless she gets involved in more real estate activities that qualify for REPS hours. ...

Certainly more options because you are no longer limited by imaginary boundaries of traffic and time.

I have been able to find a couple of options for this setup though, they just require separate leases for each room and sometimes 2-3 months of rental receipts as well. 

There are several options for skip tracing to find phone numbers and email addresses.

While you work on that, you could also explore creative financing options like DSCR loans or partnerships to fast-track your first STR.