In addition, he and his wife will refinance and pull a HELOC out and basically cookie cut or rinse/repeat this strategy.

Basically a Cleveland version of HGTV's Fixer Upper.

A few questions about the tricks of the trade: Where do you find most of your deals?

But, basically you need to get with your sister, get her on board, then crunch the numbers.

I have been perusing the BP forums and blogs for some time and will definitely continue to look here for tools, tips, and tricks. 

Always network here on Bigger Pockets it is a great resource that is free basically.

In which case a letter from the attorney to the PM company may do the trick. 

Is it any tricks to do to have this money treated as passive?

IE basically the turn key markets I would also want a deposit that I could draw on for maintenance calls. and that the owner would need to replenish.. what happens is you have a sewer leak.. tenant is in a world of hurt.. owner is gone on vacation and won't communicate.. bill is 1k.. no money to pay for it.. so PM not wanting to lose a renter and doing the best they can fronts the 1k..

I had to kill the mold and redo all the plumbing to the washer, get new valves, the whole nine basically.