Any good recommendations for the collection agency or any way to get the money back from the tenant or any way to report it to the credit bureau?

Instead, it works like a credit and goes toward some of your upfront costs.

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

Look at their rental history, the conditions of their previous residence, and ensure they have a good track record with past landlords.

I don't think he would allow someone that had to put the fee on a credit card.

Even the most meticulously crafted plans can frequently go off track due to unmet responsibilities or unforeseen events.This is the essential characteristic of the real estate industry.

Only thing is it won't be easy to track especially if you have a 10 unit and all the rents are all $450 a month. 

So the seller cannot go get another loan for a car, house, apartment, etc. so it damages their credit by stretching them too thin.Am I missing something? 

@Vinny Muli - it is VERY hard but not impossible to get an equity line of credit on a non owner occupied property. 

. ;-) I've bought a couple of probates but I found them driving for dollars (unkempt properties) and then tracked down the status.