I have backup withholding on two owners who refuse to provide a W-9 with correct TIN's.

If you buy through a fideicomiso, gross rental income from the leasing of real estate, property and time-sharing services by a nonresident individual is subject to a 25% withholding tax.

You do that because that 35% includes the cash buyer's profit on rehabbing it along with holding costs and other things.

You need:a manager contract outlining duties and responsibilitiesState Employer account for workman's comp and withholding for Fed and State SSILiability insurance for the manager & E&O (Errors & Omissions) insurance also.To get out of that trap, you will need to first find a PM of your choice and make sure they will provide the on-site, live-in manager. 

Flipping can certainly be done part-time, but it won't maximize your returns with holding costs.  

It is not illegal in Texas to withhold late fees from the security deposit.  

It's not that I object to you withholding the truth from your Realtor as part of your game - but, don't expect them to like it! 

You also need to be concerned about withholdings such as FIRPTA on disposition and other withholdings on rental income.  

If you are withholding any portion of the deposit, you have to share receipts for the expense. 

I don't think there is going to be any problem with holding up rents.