I assure you nobody follows these rules.

If you bought the property with a loan you will need to assure you are passed the seasoning period of the first loan, you'll need a "loan payoff quote" from the original lender and lender 2 will create a new loan paying of lender 1 and you'll now have a mortgage loan with lender 2.

I'm not as sure about the Denver market but if it's landlord friendly and you can make it work, go that route. 

The fact that it is in a tourist area may encourage things to move a little fast but still the holding costs and assurance of completion would worry me. 

I presume that Kathy and her team fully vette the turn-key operators they are working with to assure quality rehab standards, know the area at a neighborhood and street level and have screened the property manager fully.

Talk to your wife and come to an agreement, don’t look for ammo on a public forum I assure you, it is.