The process of finding a tenant is identical to finding a traditional tenant: market, vet prospects and choose your tenant.

You can verify their identity and their authority to work by reviewing their passport, Form I-9, etc. 

She cautioned I need to be careful as this could be considered mortgage fraud if I do this multiple times in the same area. 

Most out of state investors are looking for markets that are basically identical to the Detroit market.

Whatever it is that you mean by "borrow over it", it will be true with Whole Life or IUL.It's important to understand that under the Hood, Whole Life and IUL are virtually identical.

Use a Credit Monitoring ServiceCredit monitoring services can help you track changes in your credit score and alert you to potential fraud or identity theft.

So sometimes I have clients who recorded a deed on their own (they got a template from an office supply store and sent to the county to record), but that can be a problem since the title companies are very wary of fraud. 

I believe setting the precedent upfront solves what could be serious issues before they even apply by giving them a rundown on some of the big key aspects of what the process looks like a head of time.Big indicators are verification of identity and verifying the references for documents when needed.

Is it legal for me to do this or am I committing mortgage fraud?

Let them pay you the missing rent and proceed with the fraud investigation.