If they are available online or in person.

Additionally, an LLC can make it easier to separate personal and business finances, simplifying tax filings.Quick Tip: Work with a tax advisor to determine whether an LLC is the right structure for your investments.4.

I know i personally wont build anything with adjoining walls as the long term liability is to much risk for me.

instead, why not find a market 1-2 hours away where you can be hands-on / in-person?

You must have your personal finances in order before you invest.

If a person has RCV or ACV policy makes a huge difference, than question of what coverage level people had and if they had policy add-on's that cover cost over-runs and all that fun stuff, not to mention contents. 

Do you have other collateral, such as another income property or your personal residence (last resort) your seller could record their lien against? 

i'd pick a market close by, or that you have a personal connection to, or that you visit often.chasing cash flow by itself can lead to negative outcomes - for example, these investors bought in supposed "cash flow" markets:https://www.biggerpockets.com/forums/12/topics/1215726-break...https://www.biggerpockets.com/forums/963/topics/1195280-expe...https://www.biggerpockets.com/forums/48/topics/1137397-balti...hope this helps.

It is not your responsibility to house this person's items indefinitely in your rental. 

In place of a flat fee I can see the transition being something based on referral (did my buyer agent get me a trades person, lender, home inspector, etc.