Not sure if its a regulation issue or what it is, but I've only been able to even entertain the idea of doing business with HMLs on the MN side of the border. 

Investors don t invest for RE speculation they invest for cash flow.There are thousands of investors who are professionals, small business owners , professional athletes, entertainers , high 6-7 figure incomes who buy RE to benefit from its cash flow.

Its not the sellers agent you should be passed with.

They had friends in town and enjoyed entertaining.

Pass it along to your business partner! 

It sounds like you might already be aware of this, but the only time you can put a rental property on a Schedule C is if you provide those "hotel-like hospitality services" that you mentioned, which means things like not just cleaning between guests, but daily cleanings during guest stays, and/or providing them with things like meals or entertainment during their stay. 

I only drive on the interstate when I can use my peach pass or you will sit in traffic for hours barely moving.Lots of CA and NY buyers moving away from political views and government changes they do not believe in.

What happens upon sale or if the family member should pass away?

its a foolish investment for the PMP.. hard pass.

It's very, very hard to win with a FHA loan in New Jersey now because there is a lot of competition and the properties need to be in good shape to pass FHA inspections.