@Kevin Hausfeld   Nothing would prevent you from building another home on it, assuming there are no zoning/building restrictions for 2 homes on one lot, but you couldn’t get a loan for it.

They said NO - it's no fair of us to ask for a deposit for the dogs. 

Seller disclosed leases and may have kept half of deposit.

Prior to anyone submitting an application ensure you share your rental criteria clearly ( i.e. credit score, your preference on acceptance of rental collections, evictions, felonies, misdemeanors, pets etc. ) as well as sharing any additional charges ( i.e. monthly pet rent, pet deposit(s), security deposits, admin fees etc. ) people unqualified will usually "walk" as this stage and that is where you will save time. 3.

@Louis Hemmler, no direct experience.  

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

The units are nice and have no issues at all.A lot of people ask why we cannot get them out it is very simple there is a huge backlog at the county courts and that is why it is extremely slow. 

Would anything happen if I just collected the money to pay the mortgage with no real book keeping?

No Personal Income VerificationMany investors, especially those who are self-employed or have fluctuating income, face challenges qualifying for traditional loans.

I believe though Douglas County is no longer "rural" enough for USDA programs.