Are you legally obligated to reveal to tenants and potential tenants that you are the landlord and you will be living in the same house as them? 

She said yes, then mentioned she may have a visitor in June, I forwarded part of the verbiage from our lease, that says more than 14 days needs to be approved by landlord, she comes back and says that her guest will be there longer than 14 days, and then says, "I might have to pay for the application and put them in as occupant when they come"My question, I have several potential clients that have wanted to make an application, but I have told them that there is one person ahead, since she is now revealing this, how should I handle this?

Doing our homework on potential tenants is great but, doesn't reveal the "human" factor in most cases.

A quick Google search reveals the CT state website with links to key information. 

So keep in mind there may more expenses if the test were to reveal issues.

If the inspection reveals lease violations, then I let them know that this is grounds for not renewing the lease.  

It will probably reveal that you have a deficiency in your education.

For the overboard I will probably poke holes until the joists are revealed to nail the new boards. 

A web search should reveal most of them.

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.