A thirteen year renovation would not be considered recent in my market; the water heater and AC would have no life remaining for insurance engagement and the roof would be considered end of life.I chose to move forward and make the improvements; it was the right decision from an appreciation standpoint - but after about 10 years, I decided to put a Statute of Limitation on my resentment of the seller for his shoddy workmanship (and I do know he misrepresented several components).Hope this at least let's you know that it happens more often than not.

You as the syndicator would need say, $100,000 to personally invest, and you would need to find the investment opportunity to sell the project to Accredited Investors as defined by Rule 501 of Reg.

Define your rental criteria and make no exceptions.

Define your qualifying criteria and stick with it. 

@Beth Matherne Some thoughts:1) How have you defined what your PM's duties are?

I suspect the capex/ongoing maintenance costs will hurt long-run and the condition of the property would be the defining factor. 

I would suggest to better define things, such as what is defined as a small dog.

@Byron W. you can get all the components at Lowe’s or Home Depot if they are in your area.

Privilege to keep such an animal without it being considered a "pet" requires the tenant to have a qualified disability as defined by non-discrimination laws.

"Treatment of the Income (or Loss)" "If the rental income (or loss) relates to a property other than the borrower's principal residence: If the monthly qualifying rental income (as defined above) minus the full PITIA is positive, it must be added to the borrower’s total monthly income.