The security deposit was about 1.5x monthly rent..... the PM attempted to collect the final rent payment but was unsuccessful.....Now according to the property management company they need to technically apply the security deposit to the rent (according to them is part of some sort of fair housing law or something etc.) vs applying it to the damage caused by the tenant. 

@Paul @Paul Hurtubise especially family, it's not a law and you can do it yourself, but yes record a second deed of trust if you want money from them.Good Investing...

I have no idea about Oregon law, but based on what you wrote, hire an attorney.It's never a good idea to do it yourself in anti-landlord locations.

But with horrible returns and the threat of statewide anti-landlord laws even that seems bad.

I'm not in NYS, but in WA you can google the law and find what is required.Going off the top of my head here for WA:Deliver a copy personally to the tenant.If the tenant is absent, by leaving a copy with someone of suitable age and discretion at the rental unit AND mailing a copy.If neither of the above are possible, by posting a copy on a conspicuous place on the premises, handing a copy to any person living there, AND mailing a copy.There's also a form that goes along with notifying them.

Specifically regarding plumbing you could add (depending on your State or Local Laws) "... unless determined by repair person that such blockage occurred during the time Tenant controlled the Premises and due to some fault or negligence of Tenant, specifically excluding blockages caused by roots or backups from the street..."

Though, you'll have to check with the laws in your area to see how it's handled in AL.

And finally they want success in real estate investing skipping the necessary years of experience, capital accumulation and mastering  lessons regarding real estate principles, law, and finance, by paying a “mentor” (guru) for a 3 day workshop and continual “mentoring”.  

Sometimes it is quicker.The folks at my probate court told me that it is the law that they have to be published somewhere to notify creditors that they have died.

Knowledge of local markets, state tax laws and being a real estate investor are all important in your search for a CPA.