Not by my choice.  

As a manager, if there is that much in the way of higher end rental then that would be my choice.

So far, the candidates he has presented have been pre-vetted (to a point) which eases my workload sufficiently to justify his piece of the returns.I am also looking at the tax implications to me of investing in notes in the U.S.A. and how best to go about that endeavour.

In a open market the tenant has a choice to go somewhere else if they don't want to pay a Application fee. 

It's not a choice. 

In the next 4 weeks I will visit the city of choice to meet potential turnkey provider, CPA, Attorney, home inspector etc. to build the local team, plus location and property checks. 

I have a lot of friends up there and like I said lived there myself, but no one I've ever known lives there by choice unless it is to save money by living cheaper than they can in LA (not a good sign).

I think trying to make the house as maintenance free as possible such as xeriscaping, solar panels etc as well as environmentally conscious fix up choices for materials you can appeal to a good market.

If there is sufficient equity (and I would make sure there was before I make an offer) how quickly can I do a home equity to pay back my 401K and CC?  

It is not a good choice for a passive investor, but a wonderful investment for someone who's willing to exercise a little leadership.