This hasn't happened to them before, but I'm kind of surprised that it doesn't happen more often since criminals could easily create a fake identity and use someone else's card.

I have financed a number of these discount debt purchases by an entity owned by the debtor when, for regulatory reasons the payee of the note would not discount an identical payoff for the borrower.  

Perhaps things will change in the future and I will meet someone identical to me or perhaps even smarter and more trustworthy.  

I don't want to step on toes, but each group has its own personality, its own identity.

We are in a nearly identical situation my lender and accountant have both agreed this is a complicated one.

Should I start marketing to motivated sellers without a business identity ?

You could add another 4 identical duplexes in the future if you want.4) There's no renovation required.

Additionally, there is an unpermitted small storage addition for lawn mowers and stuff on the side of the home (approx 5ft wide by 2feet deep) that was built using identical materials of the property so it blends in and looks of professional quality.

The property itself generates the identical cash flow whether purchased with cash or 100% financed. 

Based on a lender's appraisal, my CMA, and the opinion of an independent appraiser who's opinion I trust dearly, the market value of the home is right around the $440K-$480K,Now, what is the market value of a home that is visibly/tangibly identical to my listing, but held with fee simple ownership?