If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved). 

But not everyone is willing to turn over control to a third-party like that nor is everyone able to do the appropriate due diligence.

Will the title company put this property under our LLC name, and won’t be required to legally inform HUD/tax authorities. - will it influence property taxes once we move to conventional loan in 3 yrs? 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Best part is that it unfolds and if site prep is done, we can have a renter in in a matter of days upon delivery. 

.- but the advertising company still gets paid.He has to pay for accounting services, payroll services, tax services, legal services, etc.- they all get paid whether he makes money or not.So, what's your point?

@Charles Evans Zelle and Venmo do not provide the same protections as a third-party rent payment portal.

In total, including money lost from rent, legal fees, and repairs, the situation cost almost $30k.

@Sharon Porter,Investing in a state-controlled property like this can be an opportunity, but it's critical to understand the legal and logistical nuances.

Buildium's 3rd party will issue the 1099 to the PM company.