This is less likely to happen when you form your structures under the supervision of a qualified professional.

I'm going to assume that the $70,000 renovation costs include your either doing a lot of the work or closely supervising the team you have, which you have not worked with before.You should definitely scrub walls with TSP dissolved in recommended concentrate.

I'm not sure therefore, whether being an eXp agent but then also having a separate property management LLC that I own would make sense (sounds like technically no since it wouldn't then be sponsored/supervised by a broker).

Some added information for anyone else who might be confused is in WA state the nomenclature used is Broker (real estate agent) and Managing Broker (Owns or Supervises a Brokerage). 

Second, when it comes to your return, generally, Guaranteed Payments (GP) from the partnership are subject to SE tax, but when the GP is for the services, as a general partner, to supervise the property shows and rents office space, perform the janitorial services (consist of cleaning the public entrances, exits, stairways and lobbies, collecting trash, and so forth) , collects the rents, deposits them in a checking account, and pay all expenses in connection with the management of the property, the GP you receive are not subject to SE tax. 

You might see a common thread here, all will have relationships, either working or official relationships with regulatory agencies, all registered and supervised lenders should be a phone call away from their regulatory agency, same with specialized attorneys, compliance groups and the regulators themselves.

As a conservative investor, I feel there are so many investments and sponsors to choose from, and I have no desire or reason to invest in any that have even a suggestion of a possible ethical or fraud related issue.The sponsor of DivesyFund, under his given name of Charles Craig Cecilio, was charged by regulators at the state of California Bureau of Real Estate for: "secret profit or undisclosed compensation, use of false or Fictitious Business Names, failing to submit independent audit report, failing to file with the BRE the Quarterly Threshold Reports, failing to supervise the real estate activities of the company, inaccurate and incomplete trust fund records, inaccurate and incomplete recording of separate record for each beneficiary or transaction, and failing to maintain the monthly reconciliation of all the separate records or transactions to the balance of the record of all trust funds received and disbursed."

In many ways it is like my operations manager in that there are a variety of tasks and you supervise the many facets of the business/property.  

when you're remote / thousands of miles away it's much harder to build a network, look at properties in person, get to know an area, supervise or manage a rehab, get a project off the ground, etc.

Section 8 nightmare, or were both parents just so busy working they could not properly supervise the next generation.It's hard to believe a parent would let children act like that, but some do.Good luck collecting beyond what the deposit is.And if it would have blown up, oh what a sad thing that would have been--at least you caught it in time.Good Luck!