You will not accused of discrimination, or any other sin, if the applicant decides your rental is not for them and decides not apply. 

Without witnesses or documentation there is not much you can do...the neighbor just may be crazy.

That by itself is not enough to accuse someone of being a fraud. 

You may be accused of taking advantage of him so be very careful. 

Witnesses: Buyer Seller______________ Buyer Seller______________Reviewed By:  Attorney:  Bar Number:                            

This would be a sit down, face-to-face meeting, with someone else present as a witness and for your peace of mind.

I'm at my wits end here.Thanks in advance. 

Do whatever you can to document the process --- if you have the right contacts, have them witness the signing of the documents.

Then they got me tenants and transitioned into a traditional PM role.Benefit of a OOS investor is that I don't have to deal w/ it.... at all.

Well when I read up on the book @Brandon Turner talks about when you make an offer throw in an offer with a 20% discount so that way when you are buying, you are "buying right" and buying wit equity into the property right away.