BP has two books that provide an end-to-end blueprint for flipping houses (both highly popular on Amazon.com): BiggerPockets Presents: The Book on Flipping Houses Full disclosure: I'm the author of the books.

While I know that the housing authority will do their diligence to ensure the applicant is qualified for the property what kind of checks should I do in regards to tenant screening?

That being said I always look at the city and county housing authority sites to see what they are paying for Section 8 rents.

If your local taxing authority has an assessed value for the improvement (separate from the land) then use the ratio of the improvement assessment to the total to allocate your $200K against land and improvements.

In the example in the article, the author uses a $120K SFR with $20K as land.

That is more the situation that the author of the article I'm talking about seemed to indicate isn't uncommon.

Well, I am still wonder two things, first, will I be still in trouble if something go south, and authorities find out that it is a single family house not multi-family one, and you don't find 3 individual at the same time, how could I sign 3 individuals when there is actually only one tenant, anyone has experience on this topic?

It's a one time authorization.

A lease only conveys tenant's rights, not ownership and the tenant is not really authorized or allowed to encumber or perform the aspects just mentioned.

@John HornerIf you want to get technical bird dogging is illegal if you get any compensation.Pretty sure it would be considered practicing real estate without a license and any agreement you put in place will just be knowingly trying to circumvent that fact.So if you ever took a bird dog fee your best bet is to turn yourself in to the local authorities and plead mercy by the court.