When the resident calls for a status update, I kindly let them know that they didn't provide a forwarding address but their check is in our office safe, I can send it to whatever new address they want.  

The understanding that I have from my mortgage broker is that the loan will never make it past the underwriter if there isn't a valid reason for the purchase. i.e changing duty stations, change in family status, etc.

Now that doesn't mean you shouldn't be concerned or ignore the problem, but this is all hear-say (even though its probably true).This is the problem of the police, HOWEVER, it would affect the renter's criminal status which would make it relevant to deciding whether or not you want to continue renting to them.

With regular fees quarterly, yearly, and continuing education course to keep your license and REALTOR status.

We were planning on rehabbing that side once the tenants lease was up (which would be the right after we buy since it is month to month) and then renting it out but just found out about the section 8 status.  

And you don't have to verify accredited status before you advertise or solicit -- just before you take the money. 

But is it logical for a tenant to remodel the house given their financial status?

I will probably have to hit up a couple green houses before I get to the red hotel status!

@Charles Kao  I guess In the world of wholesaling however in the world of selling real estate this happens all the time we even have a status on MLS called bumpable.. meaning you can tie up a property with due diligence and it can be listed as bumpable.. if another offer comes in with no due diligence the original buyer has 3 days to perform or go hard on EM or they are bumped.. don't see the issue here. 

Do any of you consider the financial status of the local government when considering where to invest?