Instead of denying them, can we refer them directly over to the owner for them to sign a lease with the owner who is willing to effectively manage the contract, payment and relationship BUT would still want to retain us (albeit for a lower fee) to deliver ONLY guest and property care activities (guest communications, organizing cleaning, lawn and pool care etc). 

One way I have used to find these issues is to use a self leveling laser and mark places at the same level around the space, then measure from there to the floor to determine where it is higher or lower.

I would NOT just let them out of the lease... turnover is going to be your biggest expense.

Also, take into account that lenders will typically lower the LTV in rural areas. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

And, if and when you decide to sell the property and have to pay some of it back ("recapture") it is at a lower dollar value and, typically, at a lower tax rate.

Hey Pat if Long Island is intimidating I would consider out-of-state investing in markets that have lower barriers to entry.

But, you only get that IF the homeowner doesn't redeem/pay their tax within a year (which most do), otherwise, your return will be even lower. 

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

So, when someone brings an agent they met after seeing my property on the MLS, I raise the price of the property enough to cover that expense.