The craziest thing is made his pitch to me via text message which I thought was it's given that the manner he wanted to conduct the transactions did not seem ethical or legal and perhaps violated his fiduciary responsibilities.I've been using around trying to figure how to get the REO deals.

@Bradley Chiakas1) You 100% need a RE License in Texas to conduct fee based Property Management.2) You need insurance.  

Multiple evictions will result in denial.8.Long term rental history or home ownership is favorable.Residence history that shows an excessive number of moves within the last five years will require additional security deposit.9.If residency was out of state within the last five years, an additional fee may be necessary to conduct an out of state background check.

One of the identity theft scams is grabbing people's info to open cell phone accounts to conduct illegal business with.  

Would it hurt to conduct a back ground check on th4e individual not wanting to be on the lease? 

Multiple evictions will result in denial.8.Long term rental history or home ownership is favorable.Residence history that shows an excessive number of moves within the last five years will require additional security deposit.9.If residency was out of state within the last five years, an additional fee may be necessary to conduct an out of state background check.

Eg - House purchase cost: $60kClosing: $1,500Repairs: $8kAppraisal: $100kDFE ReFi amount: $61,500Notes-$75k is technically 75% of the ARV DFE payout is only $61,500$8k is “left in the deal” because buying with cash and using DFE only allows you to pull out 75% of the appraised value NOT TO EXCEED original purchase price + closing costsYou leave $8k in this deal for the convenience of conducting the ReFi under DFE rules, vice waiting 6-12 months for a traditional cash out ReFi seasoning period.

(If your employer continues to contribute) Also look at the 401K documentary 60 minutes conducted.

Am I living in the past expecting to conduct business by phone? 

There's the obvious such as: choosing a good location, conducting a title search,  and making sure you don't go over your set price; however, I was looking for best practices on avoiding duds properties (e.g. properties with folks who won't move out, or properties where the previous occupants put cement down the drains, etc.).