I'll PM you a video link to explain it better, but it's technically a commercial-style loan.

Don’t waste your time otherwise.The last thing you want to be doing in rental arbitrage is doing minor repairs to the house.Even if the landlord pays for it according to the lease, the issue is you’ve got to front it so you can get it done to avoid vacancy or bad reviews.Be in the business of hospitality, not real estate.

Shouldn't major foundation issues be something that should be reported in home inspection at purchase?

I am sure that you would think that the Turo contract would help with that, but seeing as you are providing it as a service in addition to your STR, I can see issues if there is a problem.Plus you are offering significant services with that rental and that would change your tax situation.

I’ve been trying to solve this puzzle for a while too and the issue I keep running into is more so not being able to claim Short Term Rental income until a year or two later.

Check out NARPM.com for these.Regarding doing these, you technically need 3 documents, which should be SEPARATE.1) Lease2) Option contract3) Purchase contract, associated with the Option ContractA decent PMC should be able to handle all this, but they should also require you to supply the Option & Purchase contracts you want used.

Will permits or zoning be a major issue and etc.

Technically you are talking about a "syndication" where you are the general partner who does all the active managing of the deal and your friends who would be limited partners and completely passive.Probably too much hassle to do for small deals and for small amounts of investment money.

I agree with @Nathan Gesner that the migrant issue is fueling the fire on the affordable housing crisis, more people needing them has to drive scarcity. 

I dont know your actual address but if in Austin then technically yes you would need to get a permit.