Option 2: Take a larger portion out of Fund 2 about 30k to buy a duplex that's with in driving distance from the hospital.

For it’s part, Fannie Mae historically has focused more on purchasing mortgages from larger financial institutions, while Freddie Mac was originally designed to support smaller/regional/thrift institutions.

For example, I invest in Indianapolis and there's not many 3+ bedrooms with 2+ bathroom MTRs so if I was looking to cohost I would go after a larger property to target the undersupplied market. 

Also, I was thinking about it and I think if you were going to make shared amenities (like fire pit) you probably would be very successful doing that strategy I mentioned for larger listings.For big dates I would have one listing that is both the primary and ADU that sleeps 12+, or whatever the number is, and then you can have the ADU and primary again as separate listings for the rest of time. 

If the property is vacant, you will attract a larger pool of buyers as not everyone looking for a house wants to use it as a rental. 

Now that the property has been renovated, I have recently been applying my efforts toward starting a syndication to scale up to the purchase of larger properties.

Use that as a downpayment on the new larger asset.

The 3 issues you described are all fairly large red flags, especially for someone's first property.

If the property is vacant, you will attract a larger pool of buyers as not everyone looking for a house wants to use it as a rental.

Feel free to inquire about their staff qualifications if it's a larger organization.2.