Yes there are some big items involved in this, and I'm very excited to figure them out. 

@Jamie Banks The issue is as far as I know almost all Leases when ALE types of companies are involved the  insurance policy holders are listed as the tenant.

i keep seeing:1. buy out of state rental in a solid neighborhood with long-term potential (just as you are recommending) but then...2. have one rough tenant turn that costs a couple grand, and3. give up on real estate investing, and turn on everyone involved in the transaction for not guaranteeing that sweet cash flow in month 1 lol, yea there is a decent chunk of investors who get really butthurt by that one bad unit turn and just give up.

@Matthew Morrow, I am a little curious on how you are involved on the deal and what your relationship with this client is?  

Structuring a 203(k) loan for your partnership involves some creative thinking, but it’s definitely worth exploring.

But the more property you buy the higher the likelihood of being involved in a situation where asset protection above basic liability insurance can SAVE YOUR A_ _ !

The STR is a lot more work and even if you get a manger, you may have to be involved.

Permits may be needed for bedroom or bathroom modifications, especially if plumbing, electrical, or structural changes are involved.

You are possibly setting yourself up for immediate failure.....there are too many moving parts and too much money involved to mess up this facet of the project.

By the time I got to that point the cost and time involvement was so high I decided it was a distraction to what was already working.