All the things associated with running and maintaining a rental are the responsibility of the property manager, i.e. maintenance, placing tenants, collecting rents, paying utilities.

With current renters willing to sign a year-long extension, we have the place rented for $1,025/month.   

@Adrian Fajardo - during the year I resided at the property the rent that I collected from my tenant covered mortgage, taxes and insurance completely. 

Collecting SFR is fine for cash flow, but very difficult to sell your 7 figure portfolio.

In my area I wouldn't buy a 1947 house with a basement water problem.I understand there may be other factors that may make this a good deal though for you.Obviously there are things you could do, such as ensure gutters are unclogged and draining away, or dig up all around the house and sand blast the outer walls and coat them and install gravel all along the exterior walls, or put in an exterior sump, or have trenches cut all around the basement perimeter inside the house to collect water and then pump it out, or you could even toss away some $ by painting the basement walls and floors with special thick paint, but why make any of those steps your problem?

Some states won't let you collect more than 1 month.       

In the past my husband Jon and I have bought properties in A and B locations that require extensive renovation to hold as long-term rentals, but now we are looking into doing new construction in a few areas that are more "up-and-coming."

I'd speak to them about it first, and if they are okay ending 7/31 instead of 6/30, then just write and have them sign an addendum to current lease stating it's both extension to 7/31 and constitutes required 30-day notice to vacate by that date. 

I suppose its possible that you could see a property scheduled for auction, execute a contract with some sucker for a purchase price at $XX, and that sucker could put hundreds of thousands of dollars in cashier's checks in your hands, so that you could bid on their behalf at auction for $YY, and then collect the difference as your cut after auction when you put the property in their name?

It feels so good to get owner statements that are consistently rent collected minus PM fee without any other expenses.She does not have that clause in her contract.