A lot of people under-estimate how much work is involved with owning real estate, especially if you go the route of self-managing.

The STR is a lot more work and even if you get a manger, you may have to be involved.

These programs very commonly involve restrictions and conditions on use, refinance, or resale of the property. 

i keep seeing:1. buy out of state rental in a solid neighborhood with long-term potential (just as you are recommending) but then...2. have one rough tenant turn that costs a couple grand, and3. give up on real estate investing, and turn on everyone involved in the transaction for not guaranteeing that sweet cash flow in month 1 lol, yea there is a decent chunk of investors who get really butthurt by that one bad unit turn and just give up.

As a bank will be involved I am trying to think of the best way to structure this. 

It’s crucial to negotiate terms that benefit both parties, involve a trusted attorney and title company, and conduct thorough inspections and market research to ensure a solid deal.Good luck!

What financing options are available when partnering with a solo 401(k)? Can you use conventional loans, or does the loan need to be non-recourse?

MFA are involved and recommended Zeker - this thread has me second guessing proceeding with them - any further thoughts on using them? 

When QIs get involved There is generally already a realtor or two involved. 

You are possibly setting yourself up for immediate failure.....there are too many moving parts and too much money involved to mess up this facet of the project.