@Cassie Kwok, if you were to move in you would be able to take over the unit and remove it from the rental market but then you would not be able to re-rent the unit out for a long while. 5 years is a magic number in many areas regarding adverse possession, have you been paying the property taxes or has the occupant?

I understand that we need to send out adverse action notice if we were to deny any applicant.

As a relatively risk adverse investor, I am looking for suggestions/advice on the performing notes market, whether it's worth investing in now, and how I can expand my network to find reliable resources for such performing notes.  

I am a risk taker buying used anyway...although with even  1800$ appliances having only a one year warranty I feel buying used can be risk adverse.  

But, RE isn't all about just being risk adverse and mitigating all risks, you have to consider the comments of @Jamal Pitts .

I commend you for your sacrifices for the greater good of the human race.Once you can buy into better quality properties most investors I know do not want war zones unless say it represents 5% to 10% of their entire portfolio and they will dump it fast if it gives them problems without adversely affecting their net worth.

Can a spreadsheet send out an adverse action letter?

and to understand how they fit together in your toolbox, as none will give you everything (e.g, insurance is required and it will cover you for many situations, but not always; asset protection (LLC) is litigation insurance and complements regular insurance, by minimizing the target and making it unappealing).If you are a new investor, probably you will not have a lot of assets and/or equity to worry about (but even that is relative and subjective to each person tolerance to risk) so I would not worry about that till you pass that risk threshold (in my opinion 100K+ in equity, maybe 50K if you are really risk adverse).

This has the adverse effect (to renters) of ensuring that there can never be 2 rentals in one property. 

@Nick B.The phrase in the Act is “adverse financial consequences”.