I am doubtful about you getting an engineer to stamp a set of plans for $300, unless it is very minor. 

Of course, I always recommend that investors set their eyes on a property at least once, see the town, get a feel for the area.

How will it work, we set up marketing, I'll be the boots on that ground that meets up with seller, and buyers.

I know I can't write off the lost income, i.e. if it'd rent for $2,000 a month, and I donate the use of it to the church, I can't write of the $2,000 as a charitable gift.I know if I just treat it as a 2nd home, I can write off the mortgage interest and property taxes, but how do I set it up so I can write off the entire mortgage, insurance, utilities, etc?  

I use a set of conservative or semi-conservative rules that should keep me out of trouble if the market turns against me.

I set up my LLC using a lawyer and also a living trust.If you decide to to do an LLC, your renters can write you a check to your LLC as long as you have a business checking account in your LLC name.

They had a sub contractor link and complete sets of plans.

If I have it set in the lease agreement that any violation of a rental property agreement will be assessed a $100.00 fee, do I need to give the tenant a warning letter for cease and desist first? 

Speak to your custodian and see if they will allow this and can refer you to an attorney that can help set it up.

I feel that this is a set back.