If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

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.