if you come across wood panelling in the basement...when a standard is nice drywall finish ...would you install 1/4 drywall on top of the panelling or rather demo it and start with the regular drywall ?

If you plan on investing out of state, I recommend that you find a way to get there on a regular basis.  

In my view, there is a better option.The second is not really a regular REI club but more of a monthly workshop held here.

@Christopher Gilbert Send a letter by certified and regular mail to the property management company demanding the deposits and a complete accounting(for Tax purposes) within 10 days or you will file a complaint with the Texas Real Estate Commission

But it will certainly be after a great deal more reflection than three days listening to a millionaire promise me the sun, moon, and stars and regularly put up a disclaimer on his overhead projector that read, in part, "ASSUME THAT MOST PEOPLE MAKE NOTHING OR LOSE MONEY."

From there, you can look into either the FHA 203 (Buy and Rehab) loan, or just a regular FHA loan if you're willing to live on premise, which should allow you to get started for close to what you'll have saved. 

@Adam Johnson I'm one of those less is more people when it comes to lawyers, so I don't have one I use on a regular basis, but I think, for this, and since it's family, I want to do everything by the letter of the law in order to say I followed everything by the book and treated them as I would treat any other tenant (because that's what we agreed to!).

One thing we like to do is install a deadbolt and just a regular knob with no lock at the bottom.

You can go to usps.com and buy cool stamps for the same price as regular plain stamps plus shipping...

This nanny seems like a pro and suckers people into this regularly.I now regularly consult all of my investors on how to properly screen and sniff out potentially dangerous tenants.