I have settled on a $300 security deposit.

How many lots, public or private utilities and who pays utilities?

@John Larson I wonder if it is worth calling the state or federal Securities and Exchange commissions. 

The cheapest/potentially no-cost option is just doing public records searches and contacting owners directly.

You can collect the money in many ways, I have tenants pay using secure ACH transfers using apartments.comI would declare this income because later on you may need the documented income to qualify for loans etc.

The tenant threatens to get lawyers, my concern is their safety, but I can’t get any justification to make improvements to the property for security.

You go to account and profiles and create one, your friends don't carry over to that account unless you add them but they can see what you post publicly if they look.

It’s true that not being able to drive can make things a bit more complex, but you can definitely find ways around it.Using rideshare or public transportation is a viable option, especially in areas with good transit systems.

I want to secure it from any probable liability claim or anyone suing me.

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