Do you know if this would be an issue when it comes time to having my 5 year DCA inspection in ( mid 2025) as the property is only register with them as a 4 family?

The issue is: can the operator survive to that "long term".  

This issue, while easy to solve, only came up at the end of the process.

What is as important is that you require the insurance to be issued with you as the landlord as "additionally insured." 

The issue I had was that most lenders required a certain number of completed flips done under a LLC.

So far, I haven't had any issues renting my unit.

Does anyone here faced similar issue ?

For instance, said property manager manages maintenance issues, problems that arise during bookings, basically anything that needs a physical person at the property, while I manage the rest?

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

Is there any state statute dealing with this issue?