For the second property, I would expect to have to put money into it in some fashion.

For tax purposes, you really just need to have everything aligned to the schedule E categories. 

Now consider this: all the groups people are spending fortunes to target—foreclosures, absentee owners, probate leads, tax liens—what do they have in common?

So many variables can turn a deal sideways from 1 hour to the next - i.e. inspection findings, title issues, contracts, financing issues, taxes, dept. of buildings/local municipalities, etc.I'm glad to hear you made it through the challenges, and it sounds like you'll be able to leverage this experience as you grow your portfolio.All the best to you along your journey!

I see far too many people spending all there time chasing property that they cannot buy because of lack of funds. spend that time making money first and then go after real estate. 

It also appears Investor's Edge may have rebranded from their old company name "Do Hard Money".Propstream screenshot:"Investor's Edge/Dohardmoney" screenshot: if its a reboot of Do Hard Money one would want to read all the threads on that Utah based company.

Belly to Belly is the best way for private money..

There's obviously quite a bit of diligence that comes after such as who the key principles are and their credentials/track record (both balance sheet and experience), the underlying real estate and thesis behind the investment & tax prep and audit procedures but as a general rule of thumb if the investor can't get past the first part which is understanding what they are investing in, passive investing is probably not for that individual. 

Taxes and insurance will be another $400+.

I don't know anything much about real estate, nor have the money at the moment.