We like the short-term rental idea because we could stay at the property ourselves when we want - summer break, spring/winter breaks, etc.Our budget will be right around $1M or less ideally, and we would like a short distance to the ocean.How likely is it that we could find a property as described above and have it cover or come close to covering the mortgage? 

Your clients should focus on properties with significant equity potential and work with experienced contractors to stay within budget and timeline—especially with borrowed funds on the line.Avoiding Bad Deals - Encourage them to work with experienced agents, contractors, or mentors and always run multiple scenarios, including worst-case outcomes, to stress-test their numbers.Reserves - Advise your clients to keep a reserve fund separate from their loan for emergencies, unexpected expenses, or delays.

Also, having a rehab budget already laid out with explanations on how you got the numbers would help and is definitely a plus when I look at deals even though I typically wont use their numbers it at least shows a little more effort. 

It might be helpful to narrow down your options by focusing and researching for markets with strong rental demand, growing job markets, and property prices that fit within your budget.

Eliminate debt, establish a budget, and save.

Get on a budget, build your emergency fund, pay off all debts, save up.

Contractors can give you ballpark quotes on the spot, which will tighten up your budget.

If budget is an issue, this is likely a more economical and creative way of going about getting into multi family. 

@Justin Landesman's comments are critical about not funding without being on title and/or having a written contract about the distribution of profits.How much do you think the rehab budget is?

If it's a massive budget, lenders may peak in a bit more, but definitely doable.