Property taxes are high and cap rates are typically between 2-4% from what I have seen so far.

While Schedule E is indeed where you report losses on rental real estate, your tax situation is at the level where a professional doing it would greatly benefit you.

Does anyone know if  there are any tax-related problems for using Venmo?

I recommend that you start with Off Market leads (Vacant, Distressed, Out of State Owner, Tax Liens, etc.).

I appreciate the response.I do have a couple of follow up questions.One of the big concerns is the high property taxes.

Assuming your prediction of increasing values is true, that will also increase your property taxes. 

I am new to tax surplus and I want to know how legal is it charge 30-35 % finder fee especially when the "state" puts a limit on unclaimed property of 10%.

A 1031 defers a tax, your primary sale is tax free up to those limits. 

(Obviously your primary would not be eligible for a 1031 but would be 100% tax free.) if you owned it less than a year you’d owe regular taxes and I’d suggest holding on for a year if possible. 

Also, it will also apportion the profit/losses via the K-1 distributed to each of you come tax time.Good luck.