As far as your concern about WA being a more tenant friendly state, I hear you.

I know many people have done it this way,  but two major parts I am concerned about are 1) how do you handle all the paperwork such as W2's, 1099's business records, etc. without meeting in person?

One of my concerns is that lenders won't lend to potential buyers because it is a modular home.

I'm not sure if I'm making too much of this but my concern is that if I was the one looking for a property in the area:- I would discard the property without looking at it because the competition has higher ratings.- If I still look at it, I would discard it because why take the risk on a bad sofa when I can rent a similar property without such comment.- Once we get more great reviews, the influence of that one will reduce but we have to make sure it doesn't prevent us to get bookings in the first place!

That’s why lending is my biggest concern.

Transparency, daily & weekly updates and follow-up with all concerned parties.

However, we're concerned about the possible unforeseen.

Quote from @Jordan Sachs: I'm getting the info from my friend not her husband so it is possible something is missing however, I think she's mostly concerned that there is now a lien on the new owner's property and less about paying the actual bill.

Need I be concerned with UBTI?

I am surprised that @Noah Wrights clients aren't as concerned with that.