Second for the yard, remind them that it is a shared space and to be accessible to both people.

The problem in your case is that banks understand conventional lending and the associated restrictions but have no idea what a private money loan is and how they differ.

The water heater was replaced a few months ago.I have access to very cheap money so my thought is to be proactive with those major expenses before I turn it into a rental.

@Ryan Overcash I use it personally and pay for it for all the clients who work with us who would like access. 

If I'm in your shoes, I would consider chatting with a couple of lenders to start off with mainly because your lack of income history would restrict you in terms of the financing you'd qualify for. 

Proof of funds is basically HARD proof that you are sitting on a specific amount of funds right now that you can access.

Most have only access to limited inventory, they don't have the same fiduciary duty and you have to make sure you don't get taken advantage of.

Most people bury their money in retirement plans but can't access it until their 59 1/2 and that's why they are handcuffed to their job. 

By having friends on the ground already hosting there, you have access to their knowledge and you have a competitive advantage. 

The area I live in has no restrictions on how much you can raise the rent, but I will not be raising them all the way to what each unit should be renting for because they are great tenants.