It will likely depend more on the property's debt service coverage ratio than on an arbitrary percentage. 

My Contractor an I visited both properties and he provided the quote for services and materials.

Also, it creates value as properties are improved and a service is offered.

Property management and cleaning is key - since you don't live far away, you can get away with managing it yourselves (communicating with guests, arranging cleaning, arranging repairs) but you need to find a cleaning service who would be available in the short turnover window.

How much are you planning to borrow and will the new actual income adequately service that debt.

Once you figure out exactly what they are doing or how they structure these it would be a nice service to post about the actual set up .. 

You’d apply through a regular lender, and qualify with typical credit scoring methods.  

But I don’t want to rent out whole house because then I don’t have regular access and rental income is much less.

Ive done this, no different than a regular BRRRR if you pay cashif you finance the initial purchase it's MUCH harder because you have to find a house that is move in ready that allows financing, but also distressed enough that you can add a ton of equity.

It certainly does fulfill the requirements I'm looking for but I guess I should also indicate that I'm not interested in servicers either.