They are all smoke and mirrors at our level.Once you get into competition with the REITs, then there is less of that manipulation. 

You can get smoked (lose a lot of money) if you make mistakes all the time.

The 3rd party CPA could accept rent payments and make deposits for a very small fee, which would remove one of the opportunities for any misappropriation.I don't think you have found a smoking gun, but I do think that it would be wise to ask some questions and learn more about what is involved in what your cousin is doing.

If an investor like myself pays $37/month, will they really find good deals with decent spreads, or is it all smoke and mirrors?

Then to reinforce it, after we go through all of that and each of the additional forms required by the state (smoke detector, lead paint, insurance, etc) I have a quick 1 page recap that I review with the tenant. 

Sincerely, Landlord Other things that have worked well is to include air filters and smoke detector changes in the lease.

Smell the smoke?

As for smoking we don't allow it even so we had someone set a couch on fire.Your application will be a little different, include majors and do a web search on them for your screening. 

The issue we have now though, is that it does seem that the smoke got into the attic and the beams are showing smoke coloration (see pics).

I am in Richards camp on this one if you have no money and still want to pursue this line of work.. then be up front with your offers.. the only reason people use the BS white lies is because the reality is in hot markets or properties that are not worth anything you won't get many offers accepted if you can't close... why let you do it when that is what they hired the agent to do.Get your ducks in a row find a money partner, be strong in your offers put those who have no funds in their place when they try to compete against you... that's how you make money in RE.. not with smoke and mirrors if you do not get a ligit  money partner your probably will be out of the bizz in a very short time.Very first thing I would do if I was wholesaling is I would have a hand out... entitledBEWARE the PERSON trying to buy your property that has no money...