Send him a note indicating that since you intend to sign with the current occupant of the unit you are sending him a termination notice (enclosed) then sign a lease with the brother or him and the brother. 

PM and on site manager ripping them off left and right. he gets it up to about 90% occupancy but has 30% collection issues.. a Murder a few other violent crimes. later and things start to go back to the mean.. he is now having to fly there once a month to collect what rent he can.finally gave up like how these properties get recycled and sold for 450k to the next victim and lost 500k plus in the process.. 

Mercer county has some demanding landlord rules but seems reasonable like getting a Cert of Occupancy between tenants.

This was a cold call (off market) deal and we have taken a mom and pop hotel and added value in many ways, increased occupancy and ADR (average daily rate), integrated with OTAs (online travel agencies) and increased marketing efforts to emphasize the strengths of the property as a destination for tourists visiting our region.

It was one deal that didn't require "owner-occupancy".

Were they local for you (in your state of residence or occupancy), or local to the property wherein you were investing? 

In my opinion, if I bought a first floor unit with a dune view, I’d expect to get less income than the other two, based solely on less occupancy. 

AirDNA recently published a "best places to buy vacation home" breakdown and Napa and Sonoma clearly stand out as unusually profitable: http://blog.airdna.co/buy-vacation-home-properties...I think that's in large part due to the strong restrictions on STR's - when visiting Napa I was told that non-owner-occupied STR permits are hard to come by, STR permits have an annual cap, and owner-occupants get priority. 

@Tina Huffman If the occupants are squatters, you have the risk of the property being vandalized or worse (e.g burned down).

Inspect the properties regularly, at least annually, but preferably every 6 mo. or 3 mo. depending on the property and the occupants.