That is me reading between the lines, and I would suggest partnering with someone who has the money.

If you and your wife are on the same page, I say absolutely go for it.Don't worry about the naysayers telling you to invest out of state if that's not something you're comfortable with right now.

(maybe that's just me?) 

agree .. other wise its just the bottom feeders looking to take his equity from him  with couching it as a rescue.. his best bet it to sell if its owner occ the profit is tax free .. regroup and start over.. 

We do attempt to notify the owner before we make the decision and give them the opportunity to give input but keeping the property and tenant safe, and following the Tenant Landlord Laws are more important than getting permission. 

I've heard there's a good chance the mortgage company won't care as long as the payments continue to be made on time but I still want to protect myself just in case.

Last short term rental we put on the market was booked for a 30 day stay first day on the market.

I just don't know how well it would work since I already have all the entities and would just need advice, consulting, cleanup, and filing returns, that's pretty much it!

Find a new friend.I would get rid of them for just one of those issues.

Thanks for the suggestion @Matt Giordano.