We would like to continue to buy notes and hold in our portfolio but we anticipate our capital to decrease in the next few years if we continue to purchase , so looking for sources to hypothecate our portfolio and borrow more capital.Any advice on this strategy and sources would be greatly be appreciated.

After that you need to make sure that your rehab numbers do not exceed the ARV (after repair value). 

I asked him to move his camper so I could repair the sprinkler. 

What other issues can I expect when a septic fails or the foundation needs repair?

I  am taking uber while its being repaired.  

If you were to find things wrong in the inspection due to these factors that would cost a lot to repair, the seller may be willing to go down on the price.

You'll find a few good ones who are very good at consistently bringing good deals that fit your criteria, and a lot more who just have overpriced crap with inflated ARVs and low repair estimates. 

You will also need to account for after move repairs.

I have read that when HUD sells a home in need of repairs they will require those repairs be done within 6 months, or they want a certain amount put in escrow to go towards these repairs, if I recall correctly.

I would personally pick option C.Place tenant myself and self manage for the following reasons:I don't like giving away 10% of my rents.No one is going to care about my property more than me.I have systems in place that allow my to self manage with minimal time.I have a great support staff that I can text when there is a repair that is needed.I rarely take calls from tenants and tell them to text me to keep from getting caught up in their drama.If they don't pay rent on time and it is a repetitive problem I file an eviction to train them they must pay on time or go somewhere else.They can pay rent with Zelle, paypal or deposit rent into my bank account (most deposit into my account)It is their job to pay rent on time I do not collect or chase rent it comes to me.My rental portfolio is very passive with little interaction required by me.