@Pavlos Kasselouris, as @Michael Le & @Omar Khan have indicated, it's really more about the specific deal and how you want to structure it.

After having a few banks evaluate the property and receiving strong indications of a favorable LTV and interest rates I decided to move forward with the deal.

It doesn't matter how "passive" or "active" you are in completing these activities, they'll be taxed as I indicated in the previous two sentences.Now, the number of hours of active investing DOES apply to your status as a "real estate professional." 

What about the pictures of the houses indicates there will be a lot or very little rehab costs at the beginning (I am not good at estimating that stuff at all)?

@Travis BuckEnrolled Agent is a solid accreditation from the IRS that indicates that the person is well versed in doing taxes.

Until then, I also got the name of the girlfriend and asked Tenant 1 to send any pictures that might indicate she is living there.

Account ClosedYou're absolutely right, there is more than one way to do it as your Money Magazine example indicates.

One of the condos I own had sent a letter to owners indicating that some units have had leaks coming from the bathtub's faulty diverter valves (likely due to poor pieces from the developer) and it recommended all owners should change them as if leaks occur they would be held responsible for any damage to the building and other units.I spoke to my plumber who had a look and said that the diverter valves are inside the walls which are inside my unit and the other units that he has fixed in the same building were all held responsible for going into the walls and fixing the plumbing.

I'm surprised your profile doesn't indicate where you live / want to invest].My question is: have you bought your primary yet (and have borrowable equity)?

(Looking for indication of calling within 48 hours of initial request, first visit within 3 days [assuming its not urgent],  etc)-When do you initiate collection on past due rent?