I have a situation where a person I know is moving out of the country and would be looking to put their home for sale in the summer.

The other PM can be a fix-mindset type of person where they are not willing to share anything unless you have a property and are willing to sign a PM agreement in the same conversation. 

I'm also starting off my own personal investment property journey with my husband. 

Expensive markets are often desirable because many people want to live there, driving up demand and prices.Reno, NV, for instance, is a market that benefits from diversified employment sectors, including tech manufacturing, hospitality, and recreation.

And what if the one person you didn't check has a criminal background, has collections, and more?

If you're more of a 'personal referral' person than a 'do research online' person, and this is local to you in Manhattan, KS, hit up one or two of the trades people in the "little apple all stars" BNI group.

Insurance liability, I personally know 2 families that lost their children in home pools.

@Lauren MerendinoI strongly believe that your chosen market should be somewhere that you can go to in person / have strong personal knowledge of / have family or a network in already.  

Both offered up to $40k, 12-14% rate which is higher but not bad for an unsecured personal loan. 

Definitely a personal preference.