Hey BP, I’m on the verge of starting a month to month, furnished rental (traveling nurses being the target audience), and hoping to connect with investors that have utilized a similar strategy. 

Are you paying any utilities as the owner, aside from water and user fee?

They can take care of a lot of the monotonous tasks, and even do things like send leases, screen tenants, add rent charges, pay utility bills, the list goes on. 

Luckily my customers were pretty loyal to me but you get the point. 

If they are able to remove the term it will be dependent on the loan underwriting requirements, not because they want to keep you as a banking customer.

(prorating utilities by tenant head count for instance). 

Also if someone wants to do something custom/unique, they may not be able to with the passive investment.

That's great that the bank who currently holds the note wants you on 20 year or 15 year amortization, they view you as a captive customer, they don't have to earn your business any more, as far as they are concerned. 

I'd love to utilize their expertise when assessing a property since they are local but I'm not sure what the general expectation is when I don't have a tangible property and I have not entered into contract to work with them yet.Some questions I have are: local regulations/permitting timeline, property's potential from their perspective, landscaping/amenities cost estimate (they also help facilitate this).

However, if you're running your numbers then you'll want to make sure that you're including all the interested paid for the money borrowed from your HELOC as well as the carrying costs including utilities, insurance and property taxes.