Has anybody found an effective way to combat this?

Additionally, you must notify your insurance company to adjust your policy to cover short-term rentals, ensuring you have appropriate coverage for liability and property damage specific to Airbnb operations.

Cons might include increased inspections and regulations, potential for property damage, and the possibility of dealing with tenants who have more complex needs.

What’s the best way to remodel this that will be the most cost effective?

I'm hoping to start the snowball effect and buy some more soon.

It’s crucial to have a solid agreement to mitigate these risks.The Ugly: Without clear agreements, co-ownership can lead to legal battles, credit issues, and potential loss of property.By carefully planning and seeking professional advice, you can navigate this situation effectively and find a solution that works for you and your family. 

As long as the appraisal and LTV are  there to cover the difference between purchase price and appraised value then you can effectively purchase the property with no down payment. 

I plan to give my tenants a proper notice to inspect the apartments for any damages negligence.

You may need permits for plumbing, electrical, and structural changes.A HELOC can be a flexible and cost-effective way to access funds for a down payment on another property. 

To execute this strategy effectively, start by identifying properties where the seller owns the property outright and is open to financing the sale.