Does a "Manager" carry out day-to-day at her discretion, but other partners vote on "major decisions" (such as a sale)? 

Leaving aside the wear and tear argument, how many short term renters carry furniture with them? 

Or work out other deal that does work with relative, like carrying note on it or something else.

The requirement to carry over the basis is only the value of the sale. 

Some will build in the interest carry (let it accrue) some will want it paid.

HMLs are for those to whom conventional loans are not suitable.Most of our short term HM loans, for instance, are like a cold shower - you do what you need to do (usually purchase, often rehab and flip, or stabilize and refinance), exiting as soon as possible to minimize the loan carrying costs.For buy and holds that don't want to use conventional loan sources, after any rehab has been done (or in the first instance if no rehab) we often suggest our 30 year fixed, fully amortized loan.

The high carrying costs are compressing ROI further each month that passes (and likely driving it negative). 

Although a fair rent was collected, the property cash-flows in the negative due to the addition of the loan repayments on top of the regular carrying costs.

Fair rent was collected but the property cash-flows in the negative due to the addition of the loan repayments on top of the regular carrying costs.

Guns are not the problem.I have a neighbor (2 doors down from our multi-unit on 5 acres) who has an open air pistol range on his 4 acre lot & I know 2 of our tenants (& all of our kids) have Concealed Carry permits.