Depending on the type of "group home" (drug/alcohol rehab, handicapped, mental illness, elderly, etc.) you have other laws to make sure you comply with, and great point by David D Painter re insurance.

I'm also quite certain he has an alcohol issue, as I always smell alcohol when we speak in person.When the tenant first moved in, he would wait for my wife to leave for work and then rush outside to talk to her, often presenting significant problems he was facing – hospital visits, sick parents, cyber hacking, and more.

I would even require bank statements, schedules, regular doctor visits, job searching or physical therapy or efforts to become self-reliant, etc. as a condition of SSDI -- partying, alcohol, drugs, smoking could revoke their SSDI.

He’s an alcoholic and does not work.The police do nothing and show up hours after the call.

Other benefits: Located in a growing area, and have a full bar Liquor License and a bar that is currently not occupied (A lot of potential there to sell alcohol). 

Don't provide alcohol to your guests, or bikes for them to ride offsite. 

I'm actually going to turn the 4 BR 2B into a sober house for recovering drug addicts/alcoholics - I will have 8 tenants paying 400.00/month.

He has a good job now, and I hope that he'd stay clean, but when a person is under the influence of drug and alcohol, he's not himself.  

We don't have a crystal ball to know that a tenant with no prior evictions and a solid job history would suddenly be laid-off and turn to alcohol and stop paying their rent.

I also don't give money to women street beggars with babies that may or may not have been given alcohol or heroin to shut up and sleep quietly for hours in the cold and the wet on their laps.