Afraid to talk to other adults?

His policy is for every adult who will be living in his property to submit an application - which, upon their signature and submission, authorizes him to do background checks, criminal and rental history, credit check, etc.

Likely more than 2 adults, as you need more breadwinners to pay that kind of rent in a working class area.I say try to get max rent on it as an SFH, with 2 units, only one with kitchen.  

When I know you got a raise and more hours yet you skip out on rent for two months while your daughter tells me your money goes to keep your adult son high so he doesn’t get “sick”.

I only agreed to let them apply based on the fact that an adult would be with the children and they would not be unattended in my space. 

And no, it doesn't have to be a condo. http://www.mortgage101.com/article/fha-kiddie-condo-loans-first-homes-young-adults

If the basement unit is permitted, then you will want to have a building inspector (during your pre-preurchase inspection) confirm that the existing basement unit meets all the necessary building and fire codes (fire separation, egress windows, etc) to allow it to function as a separate living space.Roomers:Local occupancy bylaws will tell you how many unrelated adults are permitted per dwelling unit (3 or 4 are common limits).  

You can only ask for the total number of adults and/or occupants.

I am not on good terms with the neighbors because I had a run in with one of the adults there on a separate matter.Today I had some workers at the property removing old, loose fence material that was piled against the existing fence.

My lease, written by an attorney in that state (FL), said the security deposit can only be returned to one tenant when there are multiple adults.