I would cut them out of it all together.

You COC will be cut in half with a minor 10% change... bet on that 10% change lol.Rentals and all investing like this is best done with a 5 year window and then working backwards, much less would need to happen for this to be a "good deal" in five years so on rentals I go with that and the 10k will be nothing. 

I have family in Mexico so that helps give me an edge. 

Took inspection report sent it to a virtual assistant (I didn’t have time at that time) to break the items in the inspection into a few categories for example Electrical, potential water issues, tenant safety, then cosmetics.

Not only because of the safety, but because the list of available companies that insure knob & tube is tiny and because they are taking on the 1800's technology risk, they are likely going to charge you for it.The upgrade will likely cost a bit but your place will be more marketable and also, all in all, safer.  

Hey Will,As a PM in the area:-have a lawyer look over your lease-make sure EVERYTHING is in your lease (who replaces air filters, who replaces smoke detectors batteries, who cuts grass)-be thorough with background inspections-make sure tenant is aware (and is in lease) on when fines occur for late rent and how much they areThose are things that first come to mind.In can be expensive and time consuming to set it all up the first time and do it in a way that protects yourself and your investment.Let me know if I can help in any way!

@Shion Queen the best is to visit the places you are looking at if you walk down the street and fear for your safety you don't want to invest there, think of your area, there are probably locations you wouldn't want to invest, these agents are thinking like that and trying to give you good advice, but without a frame of reference you feel like you aren't getting a full picture.

Independent of if an agent can see everything or not, I would agree it’s best to work with an agent in the area your looking for because they know the nuances of that market and should have an edge over people not from that market.

You're probably best doing this on your own, or letting one of the tenants manage for you for a cut in rent.

We self-manage all our units.One other thought.... condos and town homes pretty much imply HOA fees... those can really cut into your profits relative to a similar sized property that is not under an HOA.