I have a full time so called "W-2" job in IT and Software Development.

I would prefer a bank like BofA or Wells where I can place a claim and get my funds back should something go awry. 6) He did provide me a Proof of Funds statement from California Trust Bank which did show a lot of large deposits, wire transfers, and transactions however I am proficient enough in Photoshop to know that this is a document that one can easily create with the proper software.

You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.Some of best ways to find motivated sellers is to purchase lists from companies like listsource and or compile lists from city and county like 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, etc.

You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.Some of best ways to find motivated sellers is to purchase lists from companies like listsource and or compile lists from city and county like 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, etc.

Has anyone used Hot Ad Poster or any other software or service to post Craigslist ads to generate leads?

Communication is lacking, software is lacking, and you can tell they are new at this. 

If you are just wanting accounting - then you could enter the expenses in manually into an accounting software like Stessa.

What do y'all think of purchasing software used and or created by other real estate investors?

Or do you just record it separate on your accounting software?  

Regarding bookkeeping, consider using a software such as QuickBooks.