Should Person 2 be compensated extra because of possibly more time/energy spent making repairs?

You should already know not only what types of deals they're looking for (fix & flip, commercial, raw land, etc), but also what areas they prefer to buy in (and which areas they absolutely will NOT buy in), what their price ranges are, what level of rehab they are comfortable with, how they will be financing their purchases, how often they buy, if they're open to seller financing, how much profit they're looking to make per deal, their desired cap rate or ROI, how many units or how many beds/baths, etc etc etc.You should ask every potential buyer all those things when they first ask to be put on your list. 

You will always have people trying to drag you down or keep you at their level.

I have been a typical landlord who is just now embracing social media to take my business to the next level as an aspiring rehabber.

IE, if you had two FHA loans (second due to moving for work more than 100 miles), could you still get four conventional loans for investment property with the easier qualifying, and 6 more at the more difficult level?  

If the area is truly increasing in value, homes will have to start going for at least a little over what the comps might suggest.I would really check into the rental market and try to decide how easy it will be to maintain that level of cash flow.Are you talking about 5% over market or 50% over market?

I have been afforded a lot of up and downs highs and lows with doing this level of investing.

If I were you I would just go and have a talk with the guy, find out if he is just cheap and thinks hes not hurting anyone or if he is broke and this is the only way he can afford power.Maybe just go and explain to the guy that what he is doing is stealing and if he doesn't stop and get the power turned on in his name you will have to take this to a more serious level.

How we were taught was to look at a macro level and work down to a micro level, doing that indicates the activity first and drills down to specific applicable laws, regulations and rules. 

The property is not located in a flood plane, however this is  a hurricane-prone area at sea level and I believe the risk is higher than the flood map indicates.