I am not a CPA and not giving tax advice to anyone, but... on my taxes, I list all my expenses for my properties on a schedule E then I carry that schedule E amount over to the main 1040 page and deduct it from all my other income, not just other passive income. 

Investors will need to submit IRS Form 1040 along with Schedule E papers.

@Lynnette E.

Saying the issue was how the schedule E was filled out.  

I am not going myself but it could be helpful for you. https://www.eventbrite.com/e/rehabbed-and-ready-open-house-bus-tour-tickets-63770398980

We choose to use our HELOCs as short term financing or credit reserves for quick usage and partner with hard money or private lenders for the majority of the financing up front.

That cost could be baked into the rent, but without any incentive for the tenants to moderate their electric usage, it could be a costly situation for the owner.I would recommend looking into costs to have it metered properly first and if that is not effective, have a set amount built in to the lease that the tenant will pay each month. 

@Lynnette E.

I have form letters for all legal issues and can e file evictions from the comfort of my living room. 

From my understanding it is not uncommon to ask a seller for the Schedule E.