They hire a listing agent to take of things to get it ready to sell and to manage the process.It all comes down to who is submitting the best offer to mitigate their losses. 

so sponsor is doing all the work including due diligence, mitigation, foreclosure, modification, accounting, etc.

Think you can mitigate a lot of risk by insisting on inspections every 6 months.

You have a LLC, Company and Personal Insurance to mitigate the risk of what could be shifted to you.

@Mike Snyder - A far more likely scenario is the house simply pre-dates the existing building code that requires it to be raised or have other flood mitigations in place.

Take steps to mitigate risk but if it helps you sleep at night, replace them or one of them and save rent for the others. 

When you make the decision to invest out of market, you may be best served by building your knowledge base and then your boots on the ground team to help you mitigate myriad issues that will arise.

Most likely you do.I have switched out breakers on my own before.  

Keep in mind as with any business, there are ways to mitigate these risks.

I have been slow to this because I'm personally very controlling with my own money, and I can't bring myself to invest in things I don't fully 100% understand and need to be able have a strong feeling if it's a good deal or bad deal and mitigate my risks.