Maybe you could rent on the rooms as separate units, with the rest remaining a common space until you decide what you want to do with it for the long term.

Between insurance (liability, bond and Errors & Commissions), licensing, a management system, etc. you may be able to start in the $5k range per year.

It's no more deadly than the common cold.That said, with all of the media hoopla about it, are you seeing any impact on your STR reservations? 

There are a lot of holes here.You typically can not evict for late rent if the PM accepts the appropriate rent and late fees.A PM should not give 1.5 months notice to move out AND file eviction...it should be one or the other.It's common for leases to automatically renew month to month after the initial lease period. 

It also includes common forms that you can edit and use.Their web site is a free resource with links to your state law but I highly recommend the book for some of the practical advice they provide.

He said rates are ranging between 4.75 - 5.75%, 20 year amortization, fixed 5 years with max 80% LTV.I’m assuming 80% LTV is most commonly the highest ratio, correct?

The owner is quoting for 2900SF [adding 25% common area].

You really need to have some money in reserve for BRRRR deals because unlike with flips, there's no margin of error if you don't hit 75% (plus refinance costs) you'll need to put some money into it or bring some money to closing. 

My question is how common this is.

The law requires you to give notice; it does not require the tenant to agree or be present.Any time you give them notice of an inspection, it's common courtesy to try and accommodate their schedule.