On June 7th, we sent an itemized list of deductions via text; he responded on June 8th, disagreeing and threatening legal action.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Put a lien on the property(s) they own, this is needed by some court action (i.e. lawsuit in civil/criminal court) 

Please, those who have already done wholesale, answer whether the chain of actions that WHOLESALER should perform is correct or not, maybe there is no need to do some steps or actions at all, please explain me those who have already done wholesale, thank you very much.

It's simply factual:  you violated the lease by smoking, stop it, remove the resulting odor and that a repeat action could result in eviction and loss of security deposit.  

The discussion on LinkedIn has erupted into hearing various opinions as well as strategies surrounding actionable efforts.  

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

I am wondering if anyone has ever taken legal action against property managers, and if they think we have a potential case? 

Congrats on taking action to get this first property under your belt. 

They don't communicate well, don't take responsibility for their actions, do not clean or maintain homes well, and will shaft you when it's time to leave.Other than that, it's a pretty good system.