Your state's laws could well be different.The general idea of adverse possession is that if Person A uses the property of Person B and that use is hostile, actual, open, exclusive (you might have an "out" there), continuous and notorious for 20 years, Person A can go to land court and make a claim on the property that he has been using. 

How willing they are to provide it tells me what type of relationship I am likely going to have with that person as a tenant. 

See the wall that comes out from the right - simply extend it across to the left and put a door in it.It would look normal, visually, and then everyone could use that storage closet under the stairs - perfect place to store winter clothes and stuff, X-mas decorations, etc.A non-load-bearing partition wall with a door in it to the downstairs "bedroom" should be pretty cheap. 

I said whats up with these hundreds of Turkeys he said he gives one out each thanksgiving and X mas is Hams..

So, he was either still "rehabbing" in his mind or so he thought, who knows, or his whole persona was reflected in his accomplishments and that was all he had (no family, no life or whatever).

As tomorrow is the 1st and nothing formal has been set up I was planning on collecting the first payment in person, as I assume the previous landlord did, and then move to an online system afterwards.As the tenant is currently paying about 200/month under current rates (600 vs 800), i'd like to either raise it up slightly (700~), or remove the tenant after 90 days and do some renovations and then rent out for market rate. 

I have never heard of that requirement but I wonder if they are referring to the need to have a local physical address and person as your agent for service.  

I sent out X-mas cards last year, im pretty sure one of them is still in the mailbox.

Bingo - no $200k debt (m as the dome but no where near that amount) and a degree in hand!

Only grow as fast as you feel comfortable, contrary to belief real estate will not make the average person a millionaire overnight.