PS, basing your choice of lenders purely off the quoted rate doesn't tell you anything about their performance.

The areas that are consistently good have already developed and who knows whether they will grow from here. 

It's obviously less "risky" to do the small home nearby, but the Florida place comes with potentially high, consistent rental income, nearly year round.

I have my favorite gear classified ad sites and get much better deals at those sites.Note a value add does not need to be constrained to simply rehabbing a property (but that is what my value adds have consisted of). 

They were very consistent and had been there for more than 2 years.

Also there is a seasonality involved with March and April typically being our highest performers due to the events happening during that time.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

A staged lease-reading followed by a Q and A is much more the kind of training and performance exercise you need in the landlord-tenant relationship.Of course, once you get up past a certain number of tenants, holding these kinds of formal lease-signings is going to get very hard to handle and/or you're going to get sick and tired of showing up.

What is normally done, is it typical that they get paid regardless of their performance, or lack of performance?

The deal consists of five properties on one note. 3 out of 5 properties are currently rented out at 440/mo. 4 properties are 2 bed 1 bath 700= sq ft. the other property is 3 bed 1 bath 900 + sq ft.