It is suggested that  "Small" landlords use a collection agency, who will report the non-paying tenants to the credit bureaus.   

Marcus,If you want more exposure you can list it on the MLS, and you will have to pay a fee to the agent that brings you the tenant then you will have to do a credit check and background check yourself for each applicant however for my clients I prefer to list it on Zillow rentals only, because I can manage the applications directly from there and the prospective tenant only pays $35 application fee once and can apply for different properties with the same application fee.

Short answer - tenant pays.Long answer - landlord pays because tenant has no money to pay that's why they are on section 8.

Choose Your Real Estate StrategyRental Properties: Purchase properties to rent out for consistent monthly income.Fix and Flip: Buy distressed properties, renovate them, and sell at a profit.Wholesale: Contract properties and sell the rights to buy them to other investors.Real Estate Investment Trusts (REITs): Invest in publicly traded REITs for passive income without direct property ownership.5.

To pay for the renovation, we did a cash out refinance.

The primary purpose is to assist eligible veterans in purchasing, building, repairing, retaining, or adapting a home for personal occupancy.Asset Protection Strategies: If your goal is to protect your assets, there are other strategies you might consider:Insurance: Obtaining adequate insurance coverage, like homeowner's insurance and umbrella policies (as @Greg Scott mentioned), can provide a layer of protection against liabilities.Homestead Exemption: Some states offer a homestead exemption that can protect a portion of your home's value from creditors.Trusts: In some cases, placing the property in a trust can provide asset protection, although this can be complex and requires legal expertise.Legal and Financial Advice: It's crucial to seek advice from legal and financial experts.

All it's looking for at that point is total liquidity, credit score, factors on the property itself.1040's, pay stubs, Debt to Income ratios and things like that aren't a factor here.

Trust are privacy instruments and not asset protection.Anyone see a glaring hole in this plan?

I have insurance right now but I am paying upwards of $600 per door! 

He is paying a rate higher than a bank but lower than hard money and he can refinance after his equity has increased.