2- IF only $30K is labeled & considered OPTION CONSIDERATION funds paid for the OPTION (thus Not immediately taxable)     What do you call or or would be a proper way to DESIGNATE the other $30K in funds given to the Property Seller?   

You will want to perform a proper dry out of all materials and replace as needed, treat the area and have the lid put back together of the downstairs unit.

Both programs are document intensive, but if you have a team that understands the programs and requirements, if executed properly those loan programs are amazing!

The short answer is that the prices although low did not justify for a proper business model. 

I felt like I needed time to handle it properly and they didn't have the time. 

Toledo has lots of problems with management companies here not being properly licensed, using "rent a broker's," and helping people from out of state invest and the end up in areas that are not profitable and are high maintenance and it only makes the "unqualified" managers money and not the investors.

Do you have proper license and insurance to legally manage properties for other people?

Maintain proper records - Contracts, Settlement Statements, Agreements, Promissory Notes etc.Additionally, you can track income and expenses consistently, using software or spreadsheets. 

Here is a great example why.I recently saw this asset come across my desk which was a non performing loan where the seller was a year behind (they made one payment I believe - even though they were allegedly properly underwritten).

The potential tax implications are often minimal, and with proper planning, you can maximize the benefits of your investment while minimizing any tax burden.