Value add projects--where the sponsor intends to renovate the property--or more risky investments may require another layer or two added to the capital stack.

Otherwise, the risk is too high as the policy on STR restrictions changes fast.

Considering the difference and what is at risk I would look at the appraisal, see if there's any way you can get a review done and see what happens after that.

Would you all mind weighing in whether or not a system this complicated is worth the associated risk? I

The main risk I see with this is issues with tenants or depreciation of the property due to the current market being at a peak. 

As a newbie I personally suggest staying local, getting hands on, touching the property, getting experience, and yes, capturing the less risky option of owning in a centralized market with higher equity pay down and very high probability of 1.5-2.5% appreciation.  

so they probably made about 100k but on that expensive of a deal that's a really risky margin, flippers tell you the deals they made money on not the one's they lost money on.

I know it seems risky to some people but leverage will make it so much easier to scale while also driving up your ROE.

This is 100% seller's bad for not getting the deed settled.While the quitclaim suggested by @Daniel Delarosa can be very effective in some situations, it is way too risky here, where it's clear that the mother still intends to challenge. 

My one concern is liability risk. I