I dont want the money to become an issue but a by product of helping others ( scaling ). 

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

With the income issue, there are screening systems available that verify income by having applicants securely log in to their payroll provider, which then shares their gross and net income with you.

Keeping your license and avoiding any legal issues is probably worth more than this one transaction.

The only issue we have run into is the prices and bidding wars.Every single home we have looked at for personal use or an investment seems to have 5+ offers and go MUCH over asking.We are currently looking at Bay Park / Clairemont / Carlsbad / Oceanside. 

Unfortuantely, things happen that are out of your control.The insurance issue is such an important takeaway.

@Olga K.It doesn’t necessarily confirm the sewer line is completely blocked—it might just be an issue with the internal plumbing or fixtures.

The enforcing agency certainly cannot take action against an unpermitted unit without citing a specific health and safety issue to address.  

The issue you will have is that finding out what a property actually rented for is difficult.

But you do have to put some language in your lease  agreement or lease addendum that deals specifically with issues that will come up for the fireplace.