It might even be July 1, depending on your laws regarding notice and the time you take possession of the property. 

Look into what BRRR means via bigger pockets.If you're going the passive model I would advise either a solo 401k or a IRA of some sort.

I understand and respect the scaled up investment model, and can learn a bunch from it and its practitioners, but small, simple, high control, low overhead, low risk, low headaches by design is the way I roll personally ... although that occasionally bites me when I cross that line between frugal and cheap with johnny lunchbox type contractors :)

You always want to make sure that you have the property insured while you have it in your possession.

In the past I did most of my business through PPC leads and mailing lists, but direct mail began to give me diminishing returns so I changed my business model to a better one.

Some investors are willing to buy them on a speculative basis (buy and hold model), knowing that the property will appreciate in the long term, depending on the neighborhood.  

Before Tax Cash Flows (BTCF) divided by All Cash In (Typically Down Payment + Closing Expenses)BTCF = NOI - Debt Service, so yes you would include debt to determine cash on cash.I ran your numbers through my model, and I got a negative cash on cash and a DCR of less than 1. 

When we take a security deposit for a rental unit, we let the tenant(s) know that we will keep the deposit in a separate and secure account until such time the unit is vacated and possession of the unit is returned to us.

A business model underpinned by the idea "Hopefully we don't get caught" is not sound, nor ethical. 

(e) In this chapter, a holder is a person, wherever organized or domiciled, who is:(1) in possession of property that belongs to another;(2) a trustee; or(3) indebted to another on an obligation.