Like all new businesses, more will fail than succeed.Unfortunately, because real estate sells for lots of money people get excited by the numbers. 

I failed both State and National tests my first try. 

You failed to mention that you have some money.  

Long story short, the unit ended up failing the test and I never followed up with the HOA.

If my inspection fails, what happens to the check that should be coming on January 2nd?

You failed to mention if you had any money.  

If you fail to do this, then you can only go back as far as the date that the LLC was created which will subject earned income prior to the LLC's date of existence to be subject to the full self-employment taxes (read: costly). 

I hope to find individuals that have once had the same ambitions as I did, yet have either failed due to unfortunate circumstances or individuals that have succeeded with great victory.

This is a reply for all:NPNs are non performing notes where a mortgagee failed to pay his mortgage for sometime.

This is probably the most common new landlords make and they are baffled when they fail to make any profit.