We then have a bank to loan against the IUL he would issue.

Nik, I'm not sure I understand the question, but if I'm on the right track I would say that unknown issues.

Are there any potential issues I should check in advance?

Do you think this would be an issue? 

Who is going to be willing to accept such paltry returns when you can go get US backed issues in the 5% range? 

Keep all communication through Airbnb -- with Airbnb, itself, and with the guests if you're talking to them at all. 

I would like to do it on my own, but I am a long distant owner, I wouldnt be able to deal with any home issues, but I suppose as I dig, I will find ways to change that.  

Such records encompass documentation of reported issues, communication about the problems, and detailed records of any repairs conducted.

I don't want to refi out of the VA loan on my current house because I have a 2.875% loan and would presumably have to start paying PMI then also.Any feedback about the VA loan issues or my strategy in general would be greatly appreciated- I've been educating myself for a while now, but am also a total newbie in actually taking any (real estate) investing actions.Thanks,AugustOh, in case it helps to know, I'm located in the Midwest, so I could easily find a suitable 3 bedroom in a suitable area for under $250K and it probably would not cashflow at purchase in a B- or nicer area (maybe roughly break even), but shouldn't require much of a special deal to be able to within a few years.

But I have a client with the same type of building and has a non-conforming basement that he uses as an Airbnb and hasn't had any issues with it.