A Property Manager can also assist with understanding local regulations and the practical aspects of property management, ensuring you make a well-informed decision.Feel free to share more about your specific needs.

It's important you understand this, be prepared, and expect that going in.

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Understanding that you're in New York and the laws are leaned to be tenant friendly, I would still say this is the best way to go about it as a new investor.

All fees seemed right in line with industry standard, ($9.95/mo, per entity + one-time registration fees). 

I don't know the Baltimore market but have a friend who is a very savvy investor there and maybe he would do some coaching to help you understand which way is up.

What questions should I ask to understand the property’s condition and the heir’s willingness to sell?

My non-professional understanding is that those losses can only be used to offset income from that property.

I don’t completely understand how I could best put my money towards a rental property or fund one with the income that I am making.

I guess to get a definite answer I'll have to cold call to get see if all these people are behind on their payment or it's just a standard practice behind some salesmen!