However that didn't include the 3rd party of the tenants. your second scenario makes sense and if one doesn't review the statement/deposits each month can't blame anyone but themselves.I'd imagine the tenant would just stop paying rent altogether if they were "forced" into paying a late fee each mo... and owner would notice the now stopped payments from PM.

I am currently living in Lancaster, OH while working Monday - Thursday in Columbus and spending Friday - Sunday with my family in Lansing.

One is that the housing market in this area is so hot, it seems like getting into it now is an excellent way to spend a lot of money on learning and doing rehab's, only to have the market cool off before I can really capitalize on what I've learned.

After reviewing a pdf on Reduction in Housing Services on the HCIDLA website... its RAC 410.. in case anyone wants to look it up..

Which is why wholesaling is much more attractive because it requires no start up money. you cannot successfully wholesale as its taught by on line courses or gurus if you have no money.. the successful wholesalers be them licensed or not spend THOUSANDS upon THOUSANDS a month on lead generation.you could bird dog.. maybe with limited captial just gas and a phone and hope that you get paid. 

@Gary Schiefelbein I second what @Neil Henderson stated, determine how much time do you realistically have/can spend on RE investing.

How much did you spend on the other bathrooms? 

3) Can I deduct real estate investing expenses/trips considering I do not have business bank accounts, have no legal entities setup, and I have a tech office job (I spend the majority of my week on my tech office job)?

I will also continue reviewing and looking for seller financing opportunities. 

If the zoning code is online I can do a quick review to see what you can build.