I almost made the mistake of paying a Philly guru who was going to teach me the ins and outs of buying section 8 homes and after reaching out to others on BP who invest in better market real estate, realized its incredibly risky.

Do part-timers pay a flat monthly fee or something?

A friend has offered to pay me to manage a house he owns in the Greater Hartford area. 

This should eliminate the homeowner (1) selling a property while remaining liable for the note (subject to), (2) tying  up his property with a “buyer” who has no intent to close unless he finds someone to pay a higher price (wholesaler), (3) paying above market rental for an option to buy that can never be exercised (4) purchasing a property from a fix n flipper who did shoddy rehab, (5) purchasing a property with nebulous legal title, (6) contracting for home improvement with a fly by night contractor who then puts a mechanics lien on the property and (7) “listing” with a wholesaler disguised as a Realtor who doesn’t put the home on MLS. 

We're under contract on a SFH in Indianapolis and are paying all cash.  

Negative cash flow is not something I’d be okay with, but I know there are some instances where people are okay with taking a small hit for a big pay off with the appreciation (and hopes that the rent will go up).

Landlords can conduct credit and background checks and have applicants submit  pay stubs and any other qualifications they may require of any applicant. 

If they can't control there spending (or pay them self first) it's unlikely they will find success as a REI.

I would be curious to see how this plays out in the end.Exactly, more than likely both are at fault by not paying attention or caring.

They would pay all utilities and maintenance on the property and provide 2 months security deposit.