For background check I am just making sure they have no criminal past and have no evictions.

Most often, the Division issues Cease and Desist Orders in these cases, but if offenders continue to engage in the unlicensed conduct, the Division may ask the appropriate local prosecutor to consider initiating criminal action.

There is a fine line between a mistake and a criminal act in being a landlord.  

After they are qualified (credit/criminal/reference), I explain that they will give me post dated checks for EVERY month of their lease.  

Account Closed  because they have a criminal bent.. watch american greed

If there was a criminal prosecution, it may have settled out and he may be serving a sentence.

A newly licensed person has already been vetted for criminal history, etc.

Solid income, over 800 credit, no criminal background (has law enforcement employment history).

@Darrell ShepherdI just talked to LendingHome's rep and their loan program is pretty sweet if you need their help.90% Purchase, 100% rehab (taken out in draws), 4-18% (depends on experience and credit), better to have a business rather than personal, but they work there, too, 6-12 months, interest only payments (must have 3 months reserves), some doc (bank acct, etc), no major hits on your/business credit (judgments, BK, liens, criminal, fraud, etc).

When the build price for a property is $100 per square foot and you're buying 1200 sq ft for $20k, this is a market that is criminally underpriced.And it's a once in a lifetime market.