Better to be safe then sorry. 

Can I ask what price point you are looking to be in with your build? 

You will need to do significant due diligence on the operator, market and the deal. 

Some areas literally get flooded with lawn campaign signs.

I'd like to take control of the house, pull money to renovate and rent.  

I wanted to know if anyone from experience have recommendations with property managers or how do you manage out of state properties?

Some residential homes on the market have existing permits, and existing permits can be transferred, but again, you have to check with the city. 

However, this conflicts with Federal Law, which only requires a tenant to provide “reliable documentation". 

Most of my deals are within 20 min, but I follow my clients and will go up to an hour - that's maybe 10% of my deals.There are postcards and there are letters.

Depends also how old grandpa is and if he was going to leave the properties to you, as there could be options like master lease to you or other strategies that could impact your cost basis  (and his) for tax purposes.