@Carol Kotchek, There's a couple different questions and answers in your scenario that keep it from being cut and dried.1.

For the next property, take care of this one, and down the line you can possibly look to refinance (if the numbers work) so you can have capital for the second deal. 

Now as we have learned more, and have been educating ourselves more, we understand that having a fantastic and rock solid lease behind you is crucial as a landlord, but what we have now just does not cut it.

I would appreciate any inputs on how to start, laws regarding the business, loopholes to take care of?

There are small private law offices in urban areas of Los Angeles whose primary source of income is taking 40% of the cut on 'cash for keys'  money from tenants who don't pay their rent.

My most recent business success was building a certified child care center, which was inspired by my 3 year old daughter. 

Also, you may get away with that in Red Bank, and being pet free can make sense in an apartment anyway, but in many markets and SFH you cut your own throat with that policy.

And I am probably on the lower end on both of those numbers from most big time flippers.Ways to make this work:-drop your offer by $5k or tell them you will pay $82k if they carry finanincing for the project with an interest only loan at 10% (will net save you $4,000)-get at least 2 more quotes on your rehab (may save may not)-if this is an mls property, ask the agent you are using to buy if they would be willing to list the property for 2% because they will make 3% at the sale and more on the back end (will save you $1,300)This will move your profit up to roughly $13k which is a little bit better but still cutting it close.

Other evidence may be found in the floor ducts just below the registers (cigarette and reefer butts, hypodermic needles, other), so look before you vacuum and be careful what you touch.Face this head on.

I was traveling so we asked the water company to cut the water on at the meter but leave it off to the house.