lol  @Matthew Stallings and @Tim Schroeder As far as performance, we purchased one of my larger houses for $565K. 

The assumption has always been that rental income will be received in the form of fixed monthly rental payments.My thought is that a Cape Cod rental would perform better using a different rental strategy, or at the very least, other strategies should be considered.

However, I'm still unsure how to actually perform the math accurately, and efficiently.

Since it's performing well, I suspect that it's in a better class of neighborhood than the other two that are not doing well.

I neither have the time nor patience to 'teach' someone how to vet a performing or non-performing note.  

Should the amount on the 1099 just be for the income/compensation we paid directly to them (lease commissions, renewal fees, and management fees) or do we also include the amount of funds sent to them for contracting services performed through them?

Incentivize them by telling them (of course follow through with this as well) that you will maintain their services for a minimum period of time (you wouldn't want to obligate yourself but for so long if you do not like how they perform).Hope this helps.

Though I am not a paid member of BP, I do follow along with what is happening in the Texas real estate market.When you take your time and perform quality due diligence, you will win many more than you loose.Keep up the good posts on BP.

I am probably more interested in non-performing purchased at a discount, so I can fix it and sell the note.  

Often that type of clause will state a specific amount that the tenant must pay to break the lease, instead confusing it with the security deposit.If you tell a tenant that you intend not to return the security deposit if a tenant breaks their lease, then there is less incentive for the tenant to perform well on any other term of their rental agreement for the remainder of time they are in your unit.I would be careful not to confuse the matter by using a security deposit in this way.