Is Real Estate Bees a legitimate and good source for leads? 

In general, if you can tie an expense back to a legitimate business purpose its a write-off. 

In my experience that's not actually the case at least in legitimate evictions for non-payment of rent or breach of another part of the lease.  

He seemed legitimate at first, and I even had a few friends look over the materials he provided.

These names frequently come up in investor circles because of their reliability.Speak Directly to Their Team: Legitimate lenders will have knowledgeable representatives willing to explain their loan products and processes in detail.

I suggest you enter private money goldmine in search botton at top right of the screen and read the previous posts....here is one that gives good perspective as well as a link to legitimate private lenders.http://www.biggerpockets.com/forums/92/topics/1488...

It can help keep things straight, and it would look more legitimate to lenders, buyers, investors etc.

Alternative is the sherif evicts him and I pay tax and insurance.I know we can have a gentleman's agreement on these things, but im still afraid he might be able to legally sue me if we have a legitimate residential lease?

Office, event space, wedding venue, warehouse, etc.

In my experience, the good ones are expensive, typically require a subscription, and sometimes they even do a physical inspection of your premises to verify it is a legitimate person / business in US.