You'll also have to pay your office monthly technology fees.

My main concern is that we currently live just under two hours from the property, and I'm wondering if that may make things difficult. I

Dry cleaners - especially old ones, are frequently contaminated with PCE - which is a disaster to clean up.There's probably a reason this property is an REO - the last owner bought it without knowing the difficulties of cleaning up a former dry cleaner location.I think you'll spend a ton of money if you try to clean it up, and you'll be sitting on this property for a long time. 

One advantage that I have in the smaller towns is the lack of quality single family rentals available, and I have been finding that my rents are increasing substantially when I have turnover, which isn't very often (average tenancy is over 4 years).When I have a vacancy, I have very little difficulty filling it with quality tenants, but I don't get as many calls as you are reporting.I take a look at what else is on the market and price mine towards the higher end because my properties are in much better condition and have nicer finishings than my competition.

I'm a recent MIT graduate working in technology and have always been very interested in real estate and personal finance (gotta get out of the rat race!).

You might offer them a few thou to quit-claim the deed over to you, or you might offer them a short-term loan to get over what are hopefully temporary difficulties.Also recognize that it's quite likely the financial difficulties are quite serious -- lost job, relative in the hospital, etc. -- so they're not going to be in any particularly fabulous mood to talk to people they're going to think of as "vultures."

If that clause isn't illegal you can ask the PM to reimburse but it is my guess that they covered themselves in their contract with you and you will have difficulty collecting.

and I agree with your statement about the value and difficulty with that area, the property conditions and work that needs to go into it is RELATIVELY less stressful (nothing in REI is relaxing) .

In this information technology every one knows what the property is worth based on AVMs in good condition. 

I should state that the warranty is implied regardless of whether the contractor agrees to it and of course enforcement is usually the difficulty.