Challenges like unexpected renovation costs and tenant turnover can arise but with proper preparation and management, you can achieve great returns.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Where can I find proper leads or wholesalers?

When using this structure for investments, the key is to complete IRS Form W9 properly.

It was very complicated and cumbersome to set up properly and difficult to use.

The answer sort of varies on a few factors like are you self-managing, have you had a proper conversation with them over the phone, etc... 

I am now looking for advice on how to structure my bank accounts to properly separate my personal expenses from any expenses surrounding my house hack.

When done properly, they have a high probability of resolving the problem.

It can be drained every use (as long as you have an area to drain it properly to so this would be the only hold back) so no chemicals needed or reliance on a Hot Tub maintenance person2.

If they don't repay their taxes, then you can go through the proper channels to acquire the property.