Often you can pay a little extra upfront to reduce or avoid pre-payment penalties.If a conventional loan won't cover rehab, consider bringing in 1-2 partners who can cover it.As far as a quick evaluation, what you said is close, but technically what you want is: annualized gross rent (which already excludes vacancy, as opposed to potential rent, which does not) minus 50% for operating expenses. 

It sounds like you intended to exclude all legitimate evictions as far as screening criteria, but it is still absolutely fine and permissible to ask a pre-screening question like "have you ever been a party to an unlawful detainer lawsuit" - which asks more inclusively, has anyone ever filed on them?

But I wouldn't say they need to exclude a "down payment" or purchase credits.

“I cannot exclude the lease payment because the Investor assumes another car payment in its place.”Is this true?

What that means is you can't target your property only to Section 8 tenants, and you can't explicitly exclude them either (i.e., you can't advertise "Section 8 Need Not Apply). 

@Jesse AaronYou likely want to connect with a tax professional to make sure you report a correct return and you pay the least amount of taxes.The $18,000 is not fully taxable to you.Your gain is The sales price, less expenses(realtor commissions, etc) less basis(purchase price + improvements).There are potential ways to defer / exclude the gain.Was the mobile home an investment property or a personal residence?

You have 3 years from the date you move out to sell the property and exclude the gain.

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

@Eric Phillips1031 exchanges are only for investments.As a single filer, you get $250k of your capital gain excluded per Sec121“Reinvesting” your money doesn’t do anything to your tax liability.

He obviously wants to rent to someone he likes but is worried that if he excludes a qualified candidate he might be breaking fair housing rules.