It was our first multifamily project and we did a full rehab.

Fannie Mae's guidelines verbatim are as follows:Must be occupied by the borrower for some portion of the yearMust be suitable for year round occupancyBorrower must have exclusive control over the propertyMust not be rental property or a timeshare arrangement (this has the following disclaimer in the guidelines:  If the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met (including the occupancy requirement above).Cannot be subject to any agreements that give a management firm control over the OCCUPANCY of the propertyThis means that as long as you intend to occupy the property some portion of the year, you could absolutely rent it while you are not using it. 

My current property manager has failed us in so many ways over the past couple of years that it's time to move on:1.

Those management companies knew they had no units available.

Cool project for you.  

Until you have experience in partnering with others on successful projects, I highly recommend working with your partner and an attorney to structure an appropriate, legal, and viable operating agreement, be it in context of an LLC or otherwise. 

I am house hacking my 1st SFH rn and none of them have rental insurance but I do manage the utilities because I live with them so I ask them for their part of the bills/utilities...I will probably take my name off the utilities once I move out and make the primary tenant get the water/electric in their name...

I work on the Property Management side so lots of insight available from past Owners, my CEO with his large portfolio, and their experiences regarding BRRRR and what areas it's successfull here in Houston.

Since you'd be looking to hold this property long term, look at what the property's cash flow and appreciation would potentially be 5-10 years down the road to help inform your decision.All that being said, if you feel confident that you can cover the maintenance, capex, vacancy loss, turn expenses, and leasing costs for a few years while you wait for the cash flow to improve, and you have enough risk tolerance to handle a potentially difficult tenant in the first few months which could lead to zero rent coming in during that transition to getting a new tenant in place, then it sounds like a solid deal to get into with $0 down.Lastly, I'll also caveat all of my statements above by mentioning that this all requires you to self-manage the property. 

I am reaching out for some valuable insights and advice regarding an opportunity that has come my way, and your collective wisdom could make a significant impact.I've been in contact with Loan Direct LTD, particularly with James Baldwin, who claims to be a private lender offering various financing options for real estate projects.