I keep thinking about tools that can help me reduce risk by catching errors or red flags in seller disclosures and inspection docs, but that's likely because I've had a bad experiences with both.A simple and obvious example is a seller checking "No" for pests section, such as Scorpions and Snakes in Arizona when the property is in the desert, so obviously, there will be snakes and scorpions. 

Generosity, freedom, and love will create the most beautiful relationship."

I then look at area vacancies, economic conditions, employment opportunities, area demographics and verify that the property has not been red tagged or have any other underlying problems that might make it difficult to resell or rent.When I have my financial information then I can consider debt service and costs related to equity partners in the overall income produced.

Recognizing red flags early are key to staying profitable.

However neither person is local , they both have filled out applications and seem to check out , but both have "Not for Real ID" IDs which seems like a red flag to me. 

In my experience in foreign countries, there is often less consumer protections/ no central MLS or licensing/ greater risk to the principals, much more red tape, and overall higher transactions costs than here so it's important to look at the whole picture not just the commish %.

Or do other investors see this as a red flag and would prefer to have current leases?

If they won't manage a property because of the neighborhood, then I know that is a red flag for me to avoid.4.

Quote from @Jon Martin: Beautiful machine!

Certainly not afraid of it -- the government red tape is Partly a question and difficulty removing a bad tenant is probably he biggest downside - that goes for any property though.