When I face applicants with items in collection, I tell them they can pay those collections off, get them into repayment plans, or pay me a security deposit equal to what they owe their creditors.

It's very common for folks in California to have the exact problem you are facing right now.

If I win I can recoup ALL monies that were paid to him, legal fees and because the clients involved are seniors there is an additional hefty fine and he can potentially face jail time for elder abuse... 

So having a license may LIMIT you in ways you can't anticipate UNTIL u know what type of REI u want to do, and what type of houses u want to hunt down...U might end up wanting to do Probates in your county to find your B/Hs and not need the MLS barely at all. 

Depending on your municipality, you may need to get a certificate of occupancy to rent your property to someone (or face fines).  

I sold a house to a FHA buyer, and the inspector made me repaint the eves because the pain job was 3 years old and was barely starting to flake ... wouldn't grant a mortgage because of some flecking paint and everything else pristine.

It has the appearance of a converted two car garage and the face of the building is an unflattering stucco. 

Or that granny can do like everyone else that faces difficulties in primo locations where taxes are going up: Rent out a room.

If you want to have new, you can't go wrong with a Kia Soul or Honda Fit, and you'll barely be financing anything.

Go get coffee with people, meet them face to face and ask a lot of questions!