I think it's best to start with a legal lease and then and management components as you learn the business and see what works for you and what your style is.

I generally like to walk with the inspector after he is done with inspection, that way you get a good feel of the house and you understand what he is telling you better (I am not a pro so that works for me), You will feel much more comfortable once you understand the structure and components of that particular house.Familiarity with the numbers of what it would cost if things go wrong in terms of renting and familiarity with the condition of the house for the case if things go wrong with the house itself will give you more clarity of what you are stepping into and I don't think you will be worried after that, you will realize if either the deal will work for you or not.Good Luck!

Also, another key component of a successful JV is you have the same goals and value system.

I wonder how he can monitor and enforce this, though, since I encounter evidence of unauthorized cats.An environmentally conscience tenant could have lower utility bills and wear & tear on the property.It is interesting how far people will go to push their values.  

Forced appreciation is generally highly correlated with active management, some time component that resembles a job, or both.  

I would also like to add that I am also about ready to invest in some large 100,000sf greenhouses in Colorado that will be leased long term to growers seeking to cultivate Marijuana under environmentally controlled conditions.

So that's another good reason to get involved : non-profits, charities, arts/culture scene, international service, environmental groups, start-ups with a vision that excites you.

I own an environmental consulting company, and this is what we recommend to our clients, even though it means they may have less need for our mold consulting services.   

Some of my other rentals are newer homes, circa 2003-2005 with decent major components (roof, furnance, etc) and have not come close to needing the 50% rule to make solid cash flow, Yet.

What are the key components that are essential to learning a market that one is interested in doing fix and flips in?