They now require 24 hr care and he is trying to avoid selling his home to pay the $65k that is owed.

We require co-signer to be local and a real estate owner, so that in case of default we can lien their real estate.

Also, 6 months reserves is a great rule of thumb, and some lenders require that as proof as well.We do have an arrangement with Helix Mattresses where I can +/- 50% off retail with free shipping on all mattresses. 

As a result, meeting the requirements to be considered  a real estate professional may proved to be difficult. 

Do you need a certain amount of cash flow, are renovations required, how many bedrooms, etc4)who’s your ideal tenant, if you’re renting out?

If the city is ok with STR's, I then check to see what permits are required for STR operation.

I have a full time job that pays around 170k excluding stock options (which I would like to retain as a separate investment for now but I am open to use that for real estate if required).

Ie a property with 0 repairs required, then a house with small repairs, then a full remodel flip  that included adding and permitting new bathrooms, removal of walls, doors, windows etc etc. 

However, these strategies require careful financial analysis and planning to ensure that you can obtain sufficient cash flow to cover your expenses and debts Isn't it 7.5?

If the property is tenant occupied, you should require your tenants to have renters policies and lastly and just as important as the insurance you obtain is knowing all vendors you rely upon to perform work at the property and on your behalf are properly insured.