Lastly, the guest pool for MTRs is very wide and is not just limited to travel nurses.

(b) Required Documentation (i) Limited or No History of Rental Income Where the Borrower does not have a history of Rental Income for the Property since the previous tax filing, including Property being vacated by the Borrower, the Mortgagee must obtain an appraisal evidencing market rent and that the Borrower has at least 25% equity in the Property.

If you did that and then lived in the property for 8 years you would get 8/10s of the gain tax free (up to the $500K limit).

You're best bet is to talk to management and see if there is an exception that can be made based on your plan.

Personally the most effective bet is too call other local PM companies yourself because only you can truly express your concerns and maybe get better pricing.It should only take 15 mins per call.

A DST is not simply a syndication that allows investors to invest with 1031 dollars.DSTs have a specific legal framework that limits what DSTs can do. 

However, if you have limited experience, how do you even know what questions to ask to have someone here on BP answer them?

How can we limit the exposure?  

Hi Jerry,SF has some of the strongest rent control laws in the country, limiting how much you can increase rent and they also have a strict guideline for eviction. 

There's nothing wrong with a leasehold..with the exception of financing limitations.