I again asked my tenant if they might have done this on accident before going to police and starting a fraud investigation and then they remembered now that they received a check that they thought was for a return of taxes they were waiting on. 

However, it really does depend on the area. i would consult a broker or a real estate layer before settling down. 

I have a partner and he is more so"in charge" in looking a properties and i am mainly focused on taxes, potentially starting and LLC etc.

Obviously this is a great benefit, but I can't see any other benefit from a tax perspective.  

It really depends on your situation and you probably have low or small transfer taxes not sure of your exact location.In PA just transfer taxes alone depending on your valuations may deter some owners. 

If a property owner is not paying HOA dues and fees, the property taxes are probably delinquent.

I assumed that we would end up basically owing nothing since depreciation, repairs and non-principle portion of our mortgage payment on the house greatly outstripped the amount paid toward principle.The tax preparer said we had to pay taxes on essentially the entire rental payment since our income was basically at 150k.

Norm,What you want to do is look online for your county tax assessor site.

Add taxes and insurance and your monthly expenses are over $2,000.

In general, expenses related to the purchase or improvement of a rental property can be deductible, but the treatment of these expenses may vary depending on the nature of the expense and applicable tax laws.