You screen including the government welfare hand out as part of the 3X monthly rent.Everything else is identical.

That can be completely mitigated with a fleet of identical, driverless vehicles.

Today, I either use vrbo/airbnb (who in case of conflict, if you are a long time host with great reviews facing a bad guest, vrbo/airbnb cover you 100%) which is great, or I do direct, (only for longer term guests), get them sign a detailed agreement, and accept only cashier checks (delay, etc..).Today, we never hear about a credit card dispute or fraud etc... because HA/airbnb handle it, and even if they don't collect their money (rare but very possible , such as same day bookings), we are paid and safe.

Also, if you get a property under contract without both the intent and ability to close, you could be sued for "fraud in the inducement".  

The question is, would a lender consider this to be lender fraud if you certify that it is a second home and then the lender discovers the relatives are paying rent and it is actually a rental/investment property?  

Guilty of credit report fraud (I don't know how) and thought I was close to catching on and reporting her to somebody.Either way, I dodged a bullet on this one.What do you think I should do?  

So you do want to be careful with disregarded entity status.I think your attorney was probably right on the money with their advice to open and identical FL LLC and then apply the EIN to that.

When I called them why not come to work they said I did fraud by editing their proposal and they won't work.

I don't think year built has any bearing on rent unless you have 2 properties next door to each other and identical in every respect other than age.

If the seller knew that it was never legalized, then the seller committed fraud.