That management company can allow you to lock in a 20% cash on cash return with leverage( example:triple net lease to a company a STVR).

Would read more about DSCR loans however locking in rates for 5 years would make little sense in this economic cycle where yield curve is normalising rather steeply.

That way you're not locked into the deal without getting an estimate and if the rehab budget comes in higher than $65k you can easily walk away- make sure the assignment says EMD is refundable if you do decide to walk.The 70% rule is a great rule of thumb.

Quote from @Marc Lock: How is material participation defined?

It seems the most likely issue is simply having your personal names as the deed holder listed in a complaint although again, based on what you shared about your sound operations your insurance should cover any claims that would arise since you wouldn’t be triggering any coverage exclusions.

@Jon Holdman  my airplane partner has gone and done this in Oregon fully licensed and approved by the CCB  https://www.relevantbuildings.com/   check it out.. his market to start is rural cabins that can be locked and left.. and he has a multi going up in St.

have you thought about changing and are waiting to pull the trigger? 

I got a letter from my mortgage company that said I can move the title into an LLC if I like without triggering the due at sale clause. 

This is because loss of rents/income is almost always triggered by a "covered" peril (aka covered cause of loss). 

My tenant allegedly got locked in the bathroom.