I am a college student studying Real Estate and Psychology.

I'm beginning to find that our problem is more with the fact that we are both fresh out of college (and i'm still in grad school) and she's still looking for a fulfilling job.

If we are going to rehab the basement we need to pull permits on the property to keep city involved on that front because if a disgruntled tenant or neighbor finds out you're doing something without city involvement they might call you out.  

First, I would study the zoning ordinance for the property to understand the appropriate uses (permitted by-right use, special exception and secondary uses).

Many online auctions will not permit financing and require proof of funds quickly after auction end.

An older couple with a son in college.  

My rental is within a mile of the university, and I previously had students apply with no income but statements that parents would pay. (This is common in this town.) I didn't have to address that issue then because t...

The neighbor seems to think that the previous owner just added it without getting any sort of permits or approval from the city.

They are perfect for the starter homes that Habitat builds but would be of no interest to a typical for profit builder.I am not familiar with specific permitting costs and government fees for a new build but I know the costs in and of themselves are not a deal killer. 

I went to college, not that it is mandatory, and I got a business degree that emphasized real estate.