After all that, then make notes of lease breaches and give them a verbal warning.

No warning needed. 

The HOA restrictions specifically say that "Pets must be kept in a manner that does not disturb the peaceful enjoyment of residents of other lots" and one of the terms of the lease is that the tenant abides by the HOA restrictions.How would you handle this if it continues after you warn the tenant, and the neighbor keeps complaining?

Warning long post but i'm so dang excited and I just wanted to share my plan so far:  First,  if you had asked me a year or so ago what I wanted to be when I grow up, ( im 39 by the way) I would have told you........

When they didn’t cure it you could have taken them to court and eventually evicted, which would have resulted in the lose of their voucher, and more importantly, remained on record as a warning for other landlords.If we as landlords don’t take the small effort to take bad tenants to court, even when there is not hope of collecting, so as to warn other landlords, we are letting our industry down.  

Im just trying to warn people of scammers. 

I remember in real estate school the instructors warned us "buyers are liars" and that your career is much better off with listings rather than showings for buyers.

All that is excellent information for a new investor to follow.Do you have anything in particular that you wish you could warn yourself to watch for during due diligence?

I would give them one more verbal warning/reminder. 

They are provided a free lawyer that is part of the boards good old boys club so be warned.