If he is hiring you to find him jobs, you would essentially be marketing for him and getting paid based on what deal structure you work out. e.g. percentage of the job amount, fixed finders fee, etc.If you are starting your own contracting business, you would need to defer to TX small business laws.

Also, before purchasing should/could we hire someone to inspect the home to really let us know what needs to be fixed and if the purchase is worth it?

You and your insurance carrier represent larger pockets for the claimant.If you decide they can stay, and you want to make sure they have the proper coverage in place to protect your interests, make the following insurance requirements as part of your lease;1)  General Liability for $1M2)  Umbrella $1M-$5M depending on your comfort level3)  Hired and non-owned auto coverage4)  Workers Compensation5)  Add the entity holding title as an Additional Insured ***Get the proof of coverage directly from their agent. 

Its very common for me to get hired for something early in the game and then I end up finishing the rest of the house.  

If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general.

The language was added after we hired a certain home inspector who was infamous for his "over-the-top" inspections.

If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general.

But I'll actually hire and manage the subcontractors actually doing the work.

Another reason to start small, don't want to hire a contractor for a massive job just to find out they suck or are ripping you off.Then it's onto the fun part.

We've recently acquired our first STR and have hired a local PM company.