Is there a funky property tax issue that arises with the collateral that is a local municipality error and can lender quickly analyze the situation, assess and articulate the risk and allow draws to carry on or will they make the life of the borrower miserable?

Every investor  has a different risk tolerance, comes from a different financial situation and has different financial goals.

Not sure I'd recommend jumping straight into a flip, but if you're buying in cash you'll have less risk. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

There is work involved as you have well found out. 

In the cities the government got involved in housing and low income housing was built for poor people.

We feel that this is fair for all parties involved.

Multifamily investors usually look to balance risk and return - usually picking either B or C neighborhoods to buy rentals in.

I let VRBO and AirBNB handle that.Bottom line is you are taking a risk every time you allow folks to use the house.

Its already long distance but if you have no desire to be involved, no boots on the ground in anyway, it may be hard to make it work.