From what I can tell, the extra equity on the house could be utilized to provide better ROI.  

My state has a good court website where I can better do my own background checks for free so that isn't an issue.

If you're looking for appreciation, Columbus is one of the better options in Ohio. 

Maybe some easy refreshing of the mortar but I would also plan on digging down for better waterproofing.Now, no way I would build a tiny little place on that lot.

It's better to wait for the right candidate.

Larger cities offer better infrastructure, such as international airports, interstate highways, and a broader talent pool, making them attractive to businesses and tenants.Avoid Rent ControlRent control laws can hinder your ability to adjust rents to match inflation, limit tenant screening, and complicate evictions.

A lawyer might be able to answer this better, but most rentals fall under fair housing laws (there are exceptions) and that protects against discrimination based on familial status which means children or someone who is pregnant.

Find a single family, or even better a duplex that you can live in and fix up.  

You'll probably get better service approaching it that way than hiring a professional manager anyway.  

I think the borrower is better off trying a local bank or broker in that area.