I can't sell because id lose my butt on it.

Sounds like you're aiming to make some type of algorithm or software that tries to eliminate the need of competent real estate people utilizing their experience in markets they are very familiar with..........Didn't Zillow lose about $500 Million flipping houses using this exact type of model? 

However, to the other agents points above in this thread, you might be sacrificing not only time, but also likely lose out on a great deal of profit (over what you would pay a listing agent in commission). 

I was concerned that the houses don't meet the 1% rule but with older houses, you're losing in more repair costs. 

Just ask anyone who has been at it for a few years, or follow these forums and read all the threads like this one where an OOS investor in a “cheap” market realizes they’re losing money instead of reaching financial freedom through cash flow.

What do you have to lose by sending them rent increase letters to see how they respond?

Where as if you have an eviction with a single family home, if you have an eviction you lose money, and fast.

Since he doesn't have the capital, but the skills, this gives him entry into this space and seems low risk for me considering if all goes south, I wouldn't lose much. 

I can tell you, however, that if you vet a qualified buyer and don’t show him a property because he wouldn’t sign a commission agreement, you stand a much better chance of being sued, and losing.  

You'll lose a few days rent but ultimately a positive review and future recommendations from the nurse may be more valuable than that.