Will consider going that option. 

Let me know if you'd like more details on this option. 

You might get quicker answers for there by reviewing some of the best STR options in your area on Airbnb and then finding the hosts or co-hosts offline to ask questions.

You could ask your accountant about options for bonus depreciation or possibly updating the properties in order to receive depreciation deductions or write-offs for repairs, maintenance, etc. 

Keep in mind there are 8,000 different lenders in the US...so, obviously we cannot speak for all of them...but the absolute best of the best lenders in this space, that have the most aggressive pricing, won't penalize you with 2 points for one option over the other.I would also question that IRS definition - that is not the case.  

If you have 80k cash, you should have many options to invest using rental financing.

There are so many caveats and unknowns here that this is just an attempt at an idea...Option 1, the four grandchildren living in the property buy out the other two:-Estimate your PITI payments based on the expected payout to the 2 grandchildren being bought out.

It's a good time to shop all policy options -- landlord insurance, commercial umbrella, personal umbrella.

I've never had any issue or problems with wholesaling or assignments or options or double closes, all of which I've done.  

An unsecured loan, as this one seems to be, would not be eligible as a source of funds for someone doing conventional financing.