If someone like him has a cookie cutter setup they can plug you into with minimal fees it would be ideal, along with the other concepts of course (ie keeping your name associated with the properties by self-managing).

Is there going to be a 6 month delay in claiming the homestead?

Offer closer to what he wants price wise but negotiate a minimal interest rate that works for you.

So far it appears most  apartment  and condo buildings seem to be anti-short term rental, many listing this on there website, so the sandwich arbitrate strategy seems to be out.we are currently rehabbing an 11 unit building, but I am not against buying a distressed property and doing the rehab, but that will delay us to close to the summer months which I imagine are the busiest for STRs, at least in Pittsburgh.  

If any one has been in a similar situation where there has been a bit of delay finding a quality tenant please let me know how you proceeded.

But in combination with @Brian Burke's advice will minimize the chances of you investing with a Madoff-type syndicator.

If the industrial company has been there for decades and has not been too bad on the history of this complex, has a good rental history; If that is clear, I would go for it.If there were delays and problems, I would make a slightly lower offer to compensate for any resale price reduction that might happen when i am ready to sell it in the future. 

@Brian Tootle  you should not need to wait 6 months if you work with a lender who will honor the “delayed financing exception”.

You’re right about the minimal opportunities here in Flagstaff.

The investment is minimal especially when compared to what you will gain.