It's a lot of risk with not a whole lot of return. 

Rentfaxpro will also evaluate the management risk. 

Major Giuliani had to get involved back in the day because of zoning issues and what not.

Your 4.8% return on capital should be 12%-15% for the size and risk of this deal.  

In most states, the insurance companies have to file their underwriting guidelines stating what guidelines are used to determine if a risk is eligible or not eligible. 

Any recommendations for an insurance broker to help me get across the finish line and properly manage my risk?

Also, you shouldn't be closing on a Turnkey property until the rehab is complete....the risk of that vacancy time is on the company, not the investor.I'd say that both options are viable.

As he simply won't clean up the yard and I need to field complaints, I'm left with a choice to either do the work or to risk losing an otherwise great tenant.

Partnering with an out of state investor is one way of controlling the risk, which is why we do it that way.  

It really depends on the risk vs. reward for you and how much time/money you have on hand.My gut reaction: lawyer up and prepare to sue both the city and land owner for creating hazardous living conditions.