The most common refundable earnest monies are (1) finding something you weren’t expecting as part of the inspection and (2) financing falling through.

I'm currently a GIS Analyst at a Utility company but in 5-7 years I want to do real estate full time after my portfolio can provide a comfortable passive income. 

If yes, what was the outcome   Does the tenant owe any monies for outstanding rent, damages, utilities etc?  

Here is some feedbackI was at a conference a few weeks back and I suspect half a dozen or so of the bigger wholesalers as I would define them in the country were there as well. what they all had in common.1.

What is the best way to utilize that capital?

And 5000 from family member.. biggest negative on this property is utilities are not separated and utilities are included, I spend an average of 350$ a month on utilities.. 1st floor rents for 1015$ second floor rents for 800$..

But point is that banks are completely OK with this as this is a common practice with estate planning - moving assets into trust that is LLC. 

It is unfortunately very common with scammers 

@Eric Nelson I would add that any passive losses that you cannot utilize because of the AGI limitation you still will want to report those losses.

(I don't have an objection to buying somewhere remote and utilizing a property management company)Hold steady - don't do anything.