also there is a client recovery fund that most states have that folks can make a claim to the state but again generally a rocky road to go down and not a lot of comp at the end..

What if she needs to move to another state?

We own in New Paltz, Poughkeepsie, and Amenia.

Nothing wrong with this approach but what you want is a measurable, predictable number of potential deals flowing your way so I wouldn't recommend relying solely on the passive deal search.You may have access to information to help you prospect for these deals on your own.

They don't talk about state specific title companies and contracts.

I work for Aslan who is licensed in 32 states, shoot me a DM or email if you'd like to talk further.

I was thinking Form 8832 is the one, but I am confused when I get to question #3 since this entity is technically owned by more than one individual.

Right now I own a duplex, I live in one unit and rent the other for $1400 per month.

(And then any state implications)Given this isn't pennies we're talking about- working with a qualified professional to help mitigate the tax would be your best bet. 

My first property was chaotic with tenant troubles, so Ohio being a landlord-friendly state and Parma Heights being A-class location, I'm eager to get involved and experience the difference.