I strongly suggest adopting multiple investment strategies as a safety net in case a single short-term rental (STR) approach doesn't work out.

If it was a less damaging issue I might wait it out, but water, fire and 'safety' (CO detector etc) and it would be on my schedule not theirs.

We will only respond if their situation threatens the safety of others or the property (i.e., fire, flood, blood).

I’ve spent $10k to fix issues like new HVAC and fridge.She’s also been complaining about uneven floors in the house, which she says are a tripping and splinter hazard.

Take care of anything that seemingly could be hazardous.

It is important to research tax laws in a particular location before investing to understand the tax liabilities associated with the property.Building CodesBuilding codes specify the minimum standards for building construction and safety.

While funds are available for restitution, they are finite, so the fund serves as more of a safety net than a guaranteed fallback.

Given current US real estate rental profitability and interest rate, it makes sense to take as much debt as possible while keeping a margin of safety.

Be sure you and your friend are receiving annual forms 1098 associated with both loans and that you discuss with your respective tax advisors.You will purchase hazard insurance in your name, listing the underlying lienholder as 1st loss payee and your friend as 2nd loss payee.When structuring a wrap, it's best for the wrap term to be longer than the term for the underlying loan and of course the monthly P&I payment to be higher. 

Are there any hazards that need to be avoided or assets to the property to exploit?