I don't believe they are allowed to just move the money to any property they please and doing so would qualify as fraud (wrongful or criminal deception intended to result in financial or personal gain).

Doing your due diligence is crucial to the success of your rental, so taking the right steps like pulling criminal, credit and eviction reports, calling references, and asking the right questions is key.

I do not know why he isn't in jail, his negligence is at a criminal level. 

With the caveat of  not having an ordinance draft in front of me; while we don't accept Section 8 we also have a credit score minimum of 660 and we screen on basis of banking, past landlord(s) and current employment and income (as well as criminal etc).  

I have put together the following plan of action, based on a lot of research on this forum and elsewhere, my hope is that some of you more enlightened/experienced than me will take a look and provide feedback for me.Today - Jan 25 (for reference)Step 1 - Send a follow up email to every lead received online thanking them for their interest, specifying my rental requirements (income 3x rent, no criminal history, no bad debt history, etc), and providing a pdf of the rental application.

Do a background check on the contractor , because as a contractor I do them on my customers . ( liens , judgements , criminal , lawsuits ) .  

Making false statements to put less down that a buyer will occupy could land someone in a bad situation and possibly criminal prosecution. 

I would never in a thousand years do a syndication as a sponsor.. when they go bad its really ugly for both the investor and the sponsor .. investors take a beating on principal and many sponsors get rung up by the SEC and sometime criminally.

I put that I do a background and criminal checks as well as the income they will need to qualify.

Personnel I feel they are so far off reality that the assessors are criminally negligent in their assessments.