He decides that he won't be able to afford rent anymore and moves out by the end of September and we allow him to break his lease with no penalty.

Some wholesalers give themselves more time in their contract by including verbiage that allows the earnest money to be deposited any time before closing. 

Is it legal for a listing agent to lie like that and never allow her to submit an offer to the owners?

Pretty sure every market varies in price point so it's what your budget allows

Judges aren't allowed wiggle room to use common sense and the penalties are steep with an automatic judgement of 2X security deposit + court cost and the tenant's lawyer fees. 

Both Quicken products do income and expense tracking for a Schedule C type business and allows TurboTax to import tax items directly from the Quicken database.

Do not try to do everything yourself.Always remember to do a math analysis on your prospective properties and try to look at them before you make an offer or at least have a clause in the sales contract that allows you some time ( about 15 days to do a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.  

I am not able to get the water turned on for my own inspection so I was wanting to see if other investors would Plumbing: "water lines tested and would not hold pressure, the main line from the tank is malfunctioning and allow air to escape."

Having them there allows them to see the type of person I am, which all goes back to people knowing, liking, and trusting me. 

Secondly, even if the bank will allow a short sale, they still want the highest sale price possible and thus will demand full exposure to the market, so it will normally get listed on the MLS with an agent.So - let's say you find a short sale that's worth $175k as-is.