You have more options than you think.Worst house, in the best financially viable for you neighborhood, with enough left over each month to do some minor cosmetic procedures.2 years later, you can sell, cash out, get busy on the next place and an investment property.Or go for a small multi-family (4 units or less).  

I'm not referring to formal audit procedure specifically.

thanks @Bill Exeter, really good to know foreign investor can do 1031 exchange if they follow the procedure.

I am not 100% on the procedures, but I do believe that you have to live in and be able to prove that you have done so for 2 years, improve and maintain the property and take necessary steps to notify the last known owners.

Our standard operating procedure is to buy and rehab for less than a property is worth in order to refinance our money out and continue to grow.

Moving forward though, I would like to implement more comprehensive screening procedures.

More appropriate would be comparing the tenant to a dental patient   Both are receiving a service from a service provider.Best wishes

I want to point out that zoning mentioned in the listing:"Commercial Neighborhood which permits; adult day care, bakery, business services, child care center, coffee shop/cafe,community center, crafts or artisan’s studio, emergency medical treatment center, fitness center, grocery store, library, medical or dental office, museum, offices, personal services, place of worship and much more."

And if so what is the standard procedure they go through?

This is great but I would like to get my hands on a sample operating and procedures manual to help systematize my business