During our first deal we'll look at communication and regular updates.

Someone who knows and works the area regularly?  

(You won’t get the ongoing tax break and you’ll be selling or paying the taxes to cash out.)You convert capital gains income in to regular income. 

Be sure to explore the tools provided by the BPC, there is a list of top markets that is updated regularly based on a number of criteria. 

I regularly call sellers on behalf of my buyer clients that I have preapproved and walk the seller through the rigor of my preapproval process to prevent this exact situation. 

One is a phenomenal area Buckhead and the other is more mediocre at best.How to analyze investments whatever they are regular syndications, DST's, TIC's comes with experience and time.  

Don't just call them once... make it a point to remain in regular contact with them (at least 1x per month) via phone, face to face, email, text, social media, mail, etc.At the same time, make it a point to add X number of NEW contacts to your database each day or week.

A regular camera will monitor more of an area, but it is nice to have the doorbell version so if the house is empty and someone rings the doorbell, you are notified and can talk to them through it. 

You still have him managing it after all of that....fire the guy and start working on getting him out. take over managing it yourself with regular insepctions. 

As far as financing, you should be able to purchase the property as a regular investment property - no need to go the commercial route from my experience.