First offense in this state is kind of like a DUII its going to cost you 10 to 20k.. in legal and fines.. one of my main guys ( who by the way has made over 250k this half of year alone with me funding his deals) he got tagged for putting a sign in the yard on a house he did not own.. neighbor wanted the house knew he did not own it filed a complaint .. and having to go through the legal and all.. he just knows now he needed a capital partner.. ( ME  LOL ) … But as long as you have Guru's and all the others on BP preaching that its legal.. well there you go.. but 99% of the folks will never do what you do and actually call the state.. and they will get away with it up until one time someone files a complaint against them.Anyway that's my 2 cents. 

I should mention at this point that I had screened the tenants and they had excellent credit scores and rental history with no criminal record.

I've received dozens of calls and inquiries, but thus far they all have either had a very low income (rent would be over 50% of their net income) or they have a criminal background.

No offense, but this is why CPAs feed my law practice...You can file a general partnership (GP) or not.  

In D.C. you can't evict someone that is already a tenant for past criminal history unless they lied.

The last tenants were neighbor-from-hell, drunk & drugged out, criminal trespassers who habitually abused my property during all-night parties with numerous friends and relatives.

It would be a criminal act to do a lease option or even a leaseback on a short sale if that was not disclosed and, there would NEVER be an approval for a short sale with that disclosure so, if it did happen, the borrower lied.

For all they know you could be a criminal, ready to break into the property if you find out it is vacant. 

As I was mentioning to @Isaac Black he needs to stand by until the relief of Stay is lifted regarding the home because at that point he can negatiate a deal on the home and the  trustee can continue to auction the property if the loan is not reinstated or paid off.Sal, no offense but, You flip houses from San Diego.

I suppose if there is a criminal complaint, that might show up.