It's all run under the table currently and haven't had any problems, but want to formalize this as a business to avoid any hardship down the road.I don't know how I should be protecting myself here.

First one would be Zillow Rooms - in terms of range and scope of audience.If you want to be formal and have great photos then try on coliving.com Also I believe that booking.com allows it. 

I have been both formally diagnosed and medicated in the past for paranoia, and I feel I'M BARELY PARANOID ENOUGH for real estate.

However, we haven't provided any hard numbers or a formal proposal yet.

In that situation, would you just try to find someone trustworthy enough to give you a referral fee say, instead of a formal contract assignment and have them just write up the offer so you aren't tied to it?

If we can't secure funding through formal channels in 15 days I think we are going to go 2/3rds angel investing. 

First thing is to know what type of foreclosure state you're investing in: judicial or non-judicial.

Honestly, most of the companies that back DSCR loans are "investment bankers" that don't have formal credit backgrounds, so I'm not sure if I would trust them if they say they don't report.

My question is, is there anything more I need to do to (i.e. issue a formal written notice of lease violation) in order to prepare for the possibility of keeping a portion of their security deposit to pay for eliminating the odor? 

If in a non-judicial foreclosure state (ie Texas), it is relatively easy.