It was recommended to me that I collect a refundable performance guarantee fee from co-signer so she has some skin in the game.

My thinking is that there is room to raise rents, perhaps screen for better tenants that take care of the place and decrease the maintenance cost and get the NOI up above $100k/yr. 

You'll just need to find the balance of giving amazing and caring customer service to those sellers in need along with remembering as an investor, you are a business and you will need to create a win win situation for both you and the seller.

I disagree, I care about the likelihood of actual closing.

I like to have a property manager to take care of the day to day.

For things like routine lawn care and preventive maintenance, such as termite protection, the value is the cost. 

Regardless of the surface...if there's lead paint on the interior/exterior of the unit and it's loose/flaking, it will need to be taken care of. 

Maybe you don’t care too much because it’s another property for potential appreciation under your belt that the tenants are paying off?  

Their motivation is to make a fee and in most cases don’t care what problems you inherit.  

Make sure you verify the labor and material costs you are paying, I mean absolutely sure because you really do want to understand his skin in the game.