I just received a threatening email from them accusing me of slander for warning people away from their scam- we're dealing with some real dirtbags here

And if you plan to do it, do it soon, as you got a warning already in writing, Laws where you are could be different, here I am not responsible for things located in walls per the CC&R.

Fair warning though, the tenant base can be tough and the price point comes with its challenges. 

I also wonder if I should text warning if the check is cashed then she accepts the deposit return??

You would have had to move out, you find renters, the Hoa would have had to figure out there were renters not family members or yourself living there, and then send you 2 warnings.

I've heard warnings from Multiple Attorneys about bad practices (co-mingling funds with your personal accounts for example) causing courts to break the veil of the LLC and allow personal lawsuits.  

Tenants with co-signers can have less respect for a property- the fact they have an eviction on record means paying rent isn't their highest priority and the high rent-to-income ratio is a third warning indicator.

Would you listen to a lawyer who tells you not to try an investing strategy that other investors have proven to work despite warnings from a lawyer who says it is too risky?

@Cody DeLong  Personally, I'd issue written warnings but not rock the boat too much, given it's Winter.  

I include a "sight unseen" clause and warn them verbally that they are renting sight unseen and that I will not let them break their lease without penalty if they show up and change their mind.