This might have something to do with Freddie requiring their new 5 year rule to reduce their exposure.

Have your father tell the new landlord that you are a new to real estate and want to gain more exposure to this business and ask if the new landlord would be able to talk to you and maybe share some experiences from his past to lead you down the right path.

Educate yourself and learn from other's mistakes to decrease your risk exposure.3.

A few of the most common ways to limit tax exposure are depreciation (mortgage interest, property tax, physical property over a span of 27.5 years, major CapEx that can be depreciated at an accelerated rate, etc.), 1031 exchange and using a self-directed IRA (or solo 401k) to invest in properties.

San Diego has much more moisture exposure than Phoenix, but Phoenix has more sun exposure.

If there is a leak, they get the most exposure.

I know as a salesperson I'll spend almost all my time dealing with SF deals at first; however exposure to brokers and agents, who are doing the things I want to do eventually, is what I'm seeing as the benefit.I personally want to become an investor and use commercial real estate to create passive income.

I'm sure the debt you'd have to service on this loan would be less expensive than a hard money loan, also this option keeps your cash reserves higher thus your risk exposure down - as you would only have to make monthly payments and come out of pocket for the renovations.Just make sure to do the necessary renovations to get the dollar value you are seeking on the sale and I'm sure this opportunity could be the one to get the confidence under your belt to continue investing down the road!

Is there any way to protect myself from this exposure? 

To limit the exposure a lower ITV was necessary.