Check with a great tax professional!

A prudent investor doesn't seek quick riches through shortcuts.

Sounds like you have a pretty poor security system.Even with a good security system, having a tenant provide ID is the first step in a professional screening process. 

Unless you are confident in estimating the renovations needed, I would highly recommend getting a contractor's professional opinion of the rehab costs.

Quote from @Jake Hughes: Whats up BP community.What professional photographers are people using to market their rehabbed properties?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The mirage of get into Real Estate Investing, make ton's of money, get passive, do nothing, sip cocktails on the beach and professionally vacation the rest of your days sounds great, unfortunately it's a mirage. 

I am not seeking to charge each tenant, only seeking to remotely monitor each buildings water usage to identify costly waste/problems early as possible.

What they do is basically teach how to Wholesale Commercial Properties professionally.  

Identify good brokerages and licensed R.E. professionals, and those who you send your marketing to.