Best to talk the tax issue over with a CPA but the loss will be reflected in the K-1's and can offset gains in other deals, provided they both flow through to the same entity (or you personally).

I also can provide context of what characteristics each area has.

@Alex Clark James Wise will be your guy for this area; looks like he already provided a guidebook for Cleveland.    

The seller said they were all under oral agreements and no security deposits.

If possible, I may have the service provider sign-it as a "just in case".By the way, it was my CPA that provided both ideas to me :)

@Chris Seveney hits the nail on the head, you don't need concrete "legal proof" to provide to a realtor when submitting such offers.

If anyone could provide contacts in the Buffalo area that would be great! 

This property is in Phoenix, AZ.Thank you so much for any assistance you can provide!

Remind them that the security deposit cannot be used towards the last months rent. 

Don't know anything about this course or provider, but be very careful with any general courses.