They got better tenants, dealt with all the leases and advertising, collected the rents, and handled the problems so we didn't get the 3am phone calls.

Maybe a good property manager could take all that burden off you, and you could just collect checks.

Leases generally go with the tenant but if they owe rent to the previous landlord he will have to take them to court to collect. 

@James Wright the last two we have done (one is currently in process the other just closed 60 days ago) both were 4.75% 5 year initial term, 5 year extension, with a cap of 5.25%. 

Depending on what lender you use they can consider the rental income that you will be collecting in the equation for how much of a loan you would qualify for.

We learned to get feedback investors who tend to like trendy areas rather than what we think is a good investment, or areas that haven't showed up on the collective radar yet.

2) Do you collect management fees when a unit is vacant?

Many of these issues come about due to not filing the proper termination form or extension requests. 

The best case scenario rents are $2200 at full capacity with everyone paying (rare), the mortgage is $1400, utilities run roughly $500, and property management takes 8% of what is collected (a good rate).

Requirements To get a Collection Agency endorsement, you must: Get a trust account.Maintain an office in Washington State, managed by a Washington resident.You cannot begin business activity until you receive a Business License listing the required endorsement.Washington is a closed-border state.