Someone mentioned an S corporation which is a method to reduce that self employment tax- but really only advisable if you've made over $60-70k. 

The IRS actually says that this is the preferred method because it is the cleanest and best way to depreciate a property and it’s contents

I'm going to look into that method.

Not sure if that method would work as well there though. 

At least some of the methods I've been using with the person I'm working with.

As an agent I would suggest you contact owners of expired listings, those listing that have been on MLS for a long period of time - BUT DON'T talk to them about listing their properties (this may be difficult as an agent because that is what agent's are trained to do) start to think and act as a counselor, help the seller solve their problem and if you do you'll put together many transactions.Also FORGET ABOUT - the conventional way of buying real estate (20% down, using a 20-30 page contract, applying for financing and exposing yourself to intimation by lenders, underwriters and others who do not care about your financial goals and would like to see you fail in your quest for wealth) - study and understand  how to CONTROL and ROLL real estate - C&R is the highest real estate leverage ever created - C&R is about selling (assigning) real estate you don't own. it all boils down to creating a "skinny contract" with only one contingency and offering that property (contract) up for assignment using the public auction method of marketing.You can do it - flush your mind of the conventional ways of doing the real estate business and start to turn over rocks to find a sellers with a need - help them and your skills will help you make some serious money.Oh!

But how should I document this and is there a specific method of capturing this damage so if she should decide to go after the deposit, I'm fully protected?

I can than use the CAP rate I want to come up with an asking price.This is a quick way to get to your bottom line - if the expenses is less ---- well that's a bonus for the investor using this method for a down and dirty estimate of value.

What are the best methods for finding these owners online in an area of my choosing so I can approach them about a possible sale?

If you run into a roadblock there, you may have to have the down payment in cash already, but you could still BRRRR a property and use the other methods for the rehab, then refinance and pay them all back. 2.