Active participation exists so long as you participate, in the making of management decisions or arranging for others to provide services (such as repairs), in a significant and bona fide sense.

We'd be open to managing properties in exchange for rent or working out some sort of arrangement with a landlord as well if anyone knows of any unique opportunities like that.Thanks in advance for your help!

I'm putting together a mailing list myself for investors located in the East Bay/SF area, primarily for arranging meetups both online and in person.

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

What is the arrangement of these four units (all stacked above each other, two on one level and two on another level, etc)?

If the carpet is two years old, charge her 3/5's of the cost, since carpet in rentals should last 5 years.If the deposit doesn't cover what you are deducting, show a balance due and tell her that if she doesn't make payment arrangements or make her first payment by a certain date, you will pursue small claims court or collections.  

Do I need to arrange a lawyer?

Realtors have been working by the hour, on a salary, by consultation arrangements and for discounted commissions as well as under full commission arrangements for over 50 years.

If the option buyer is clear about their intent and the seller is OK with the arrangement, no problem.  

E or other tax schedules, this method would allow you to get conventional loans, you both have unlimited liability).You need a written agreement either way, and it's a good idea to get an attorney involved who has experience with real estate entities and joint venture arrangements.