First thing that comes to mind is Corporal Max Klinger..... lol.

According to @Jay Hinrichs, the back yard might be a separate S corporation as developer for ordinary taxable gains and the front part a 1031 exchange for capital gains. 

Well I just got out of college and started my corporate career so that’s why I don’t have the cash on hand yet.

Something more like Rent-Price Ratio and local income growth would be better.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I do work a full time job which is my primary income as well. 

This includes income & asset verification, tenant's credit, criminal, and eviction reports.

(The high bidder UW must have used in some part more favorable UW assumptions - either higher rental income or lower expenses.)3.

Not sure how to properly tell the tenant who's income doesn't support the rent that I do not want to resign the the lease with her. 

For income verification, I plan to obtain a copy of the employment contract.