Amazing how many investors, who are supposed to be business people, not just normal consumers, fall for sales pitches that lack substance once you dig deeper.

Quote from @Samuel Mutschler: This is mental illness, substance abuse, or someone trying to get out of their lease.I would tell them the rental is unsafe and they should leave.

this is in our lease regarding prohibited conduct, aka violation of the lease, "criminal conduct, regardless of whether or where arrest or conviction occurs, including but not limited to: manufacturing, delivering, or possessing a controlled substance or drug paraphernalia; engaging in or threatening violence; possessing a weapon prohibited by law; discharging a firearm in the apartment community; or, except when allowed by law, displaying or possessing a gun, knife, or other weapon in the common area, or in a way that may alarm others"I'm no lawyer but the person who wrote this lease is a lawyer, "regardless of whether or where arrest or conviction occurs" leads me to believe that suspicion of illegal activity is enough.

Information is readily available, and I understand it can be difficult at times to discern the trash, the selling from the substance.

Plenty of good, normal people have gotten caught with substances that are largely legal now but weren't always so legal.

I wrap them in tar paper or brush on actual tar or similar substance.

It's the substance of the transaction, not the structure.So, the inquiry becomes not whether you are representing others and engaging in 6 defined activities but simply whether you do 2 or more deals involving real estate in 12 months. 

I'm debating if to start with them because I've been trying to do my own research but I'm not finding anything with substance to actual help me start. 

He may have a substance abuse issue but I have no proof of that and he is unemployed I believe. 

Familiarize yourself with the Fair Housing Act, which prohibits discrimination against people with disabilities, including those recovering from substance abuse.