Where can I find an example of a material participation log? 

I recommend finding an accountant who specializes in real estate taxation and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

I will be making another purchase by June of next year, so there is plenty of time to find my perfect market. 

Deed is transferred to the buyer's name. 

You may need to hire someone with a thermal camera to find the actual source of the water.Otherwise, everyone will have their opinion and suggest an expensive repair that wastes your money.

@Enrique Mendez Hop on google and look up "First Time Homebuyer, Illinois resources" There are $10K downpayment loans and grants available to first time home buyers.

Let us know what you find!

Hopefully I can connect with some of you guys in here to find out more information about both and to make my decision on which route I should take.

Indianapolis/ Central Indiana Investors- do you prefer to invest in fix and flip properties or buy and hold for rental cash flow and longterm appreciation? 

As you know the inspector works for the buyer to spot serious issues.