That is my first question what would be fair compensation for that investment? 

I stick to sponsors who have at least one full real estate cycle of experience with little to no money loss...ever, conservative leverage, high skin in the game, reasonable compensation ( so they aren't incentivized to push the risk envelope) etc. 

My background is in analytics and have worn a couple of different hats in the space - sales compensation, business performance / reporting, COGS management, and opportunity / risk evaluation and implementation.Real estate investing is the first topic in a long time - maybe ever - in which I've been truly interested in learning more.

I tell my clients to bring it up to the seller, suggest that the seller contacts their own CPA for advice, and then slightly adjust the sales price to compensate the seller for the extra tax.

If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

The point is, we/I are speaking SPECIFICLLY to the status of agency, NOT compensation, compensation is a separate item. 

If my state law allows, I am attaching to the liability attorney's fees and compensation for all of the time and expense incurred in resolving this issue.

Also looks like the tenant wants in the range of 10k for compensation. 

(These averages represent state-level; individual cities may levy additional taxes.)To achieve the same level of cash flow as a property in Nevada, you would need to generate a higher cash flow in Texas and Florida to offset the higher operating costs.Texas: The property must generate $5,752 ($9,256 - $3,504) more cash flow annually to compensate for the higher operating costs in Texas.Florida: The property must generate $2,343 ($5847 - $3,504) more cash annually to compensate for the higher operating costs in Florida.Overhead costs can have a large impact on cash flow.A Process For Selecting an Investment CityThere are too many potential cities to evaluate each one.

Officially, the buyer is the one enlisting the services of the buyer's agent and also the one compensating them (however this can be offset by the seller's offer of compensation).