We are concerned that the smoking/smell will turn off prospects as well as the extra cost of cleaning up areas after smokers move out.The building is in Illinois. 

They include: zoning requirements, building codes, impact fees, permitting requirements, design standards, public land requirements, and federal Occupational Safety and Health Administration regulations and other labor requirements.

They are also elderly with visible health issues and I'm terrified if we were to purchase the home and it would result in an eviction.

Quote from @Drago Stanimirovic: Hi Austin,As a new landlord exploring self-management, your concern about obtaining signed authorizations for verifying applicant information without a physical signature is valid.

I am concerned that I will lose my money.

It is all about short stay for business, professional and health care stays.Also, make sure you have a real live lease for any stay over 30 days.

When I met her, she was working full-time at Walmart to make ends meet, and she had severe health issues from the stress.

A 3/2 is going to be less commonly desired by health professionals and you could look into insurance placement companies.  

Hey Beck, I am glad you reached out with your concerns here on the communityThe reality of our market is exactly what you are experiencing.

You don’t need an SSN to get a driver’s license, register for school, get private health insurance, or apply for school lunch programs or subsidized housing."