Luke M. makes some really great points, get the trailing financials so you can make better understanding of how the building is operating.

1- Termite Inspector2- Property Manager (who ideally is located/ specializes in the Westwood area)3- RE attorney- for forming an LLC and operating agreement.

To get a NOI you need operating expenses.  50% rule is for determining cash flow.  

As a business entity such as an S Corp or LLC, you pay part (deducted from your paychecks) and the business pays part (as an operating expense). 

He argued that since he was not the owner or operator, but simply the manager, that he shouldn't be held responsible for the property conditions. 

Welcome to BiggerPockets @Randy,I am relatively new as well, but already feel at home here, Interested in buy and hold multi family properties and short term letting.Best of luck expanding your operation.

@Rich Ngyou can have one account for all of your security deposits as long as it is separate from your operating account.

My only caveat that I'd like to share per my broker is that listing agents tend to underestimate operating expenses so if you're planning to conduct a transaction without buyer representation, make sure you know how to properly analyze the property on your own.  

if you see @Anthony CharaCheck out his profile, he coaches apartments, probably the best training for moneyMaster lease options on apartments can be a way to enter the marketplaceYou need to be able to guarantee the owner on a master lease, and you have an option to purchase a later date based on the lower NOI or net operating incomeI would start an LLC and get partners, you do the work in partners fund the company

I know that guys like @Lori Valene, @Aaron Ramm, @Tarl Yarber, @Ryland Taniguchi, @Brian Fouts, @Kevin Carbon all operate in the Tacoma area and would be interested in any deals you have dug up, I would certainly consider a partnership to help you learn the business.For other actionable steps, I would start spending a few hours every week scanning the MLS, Redfin, Zillow, etc. and learning what houses sell for in your area, learn the market and start learning how to estimate rehab/renovations costs.