Then they try to collect deposit and rent and move a prospect into the property.

What’s is the preferred way to collect rent.

You could try to get a judgement against the borrower and attempt to collect any exempt property that person may haveNEVER EVER LEND MONEY ON REAL ESTATE WITH A PROMISSORY NOTE. 

Property tax collections represents about 59% of the City's general fund annual operating budget.

He is collecting in total $4500/mo in rent from that property.

In Dayton, you can challenge the assessments and if you are buying under market and very aggressive (paying an attorney to challenge assessments every year) - you will probably pay about 15% of your rent collection in property taxes.

My favorite way to collect property is to buy as an owner occupant and then move a year later and do it again. 

If i invest that same 200k in 4 rentals (50k each ) and they go from $600 per month to $550 per month I now collect $2200 in rents. 

We are nor panicking instead trying to think though some scenarios and communicate/plan on paper . 1.Ownership:1.Create a “Medial Power of Attorney” to take over decision control if any/all owners get sick 2.Communicate ownership delegation with property manager2.Property Manager/Other Employees:1.Communicate CDC requirements 2.Outline and agree upon rent collection work process if city were to shut down 3.Outline and communicate a call tree identifying repair personnel 3.Safety:1.For employees: Release funds to buy protective gear while working within premise 2.For tenants: Communicate 2 times a week with CDC requirement as COVID19 is a REPDI development 3.For Owner: Identify all elderly tenants and communicate with them to call CDC if they would show any sign4.For Owner: Identify companies who does preventive medical grade clearing if any cases to be identified within premise. 4.Insurance :1.Confirm with current insurance to avoid and potential liability from owner to tenant negligence perspective 5.Operations:1.Review plan for marketing to get tenants if people were to leave during outbreak 2.Review plan for eviction during shutdown (if any) 3.Review cash position: 10 months cash supply covering 10 month of debt payment .

He may not actually have a license and in that case he can't collect anything and could be subject to sanctions imposed by your state for contracting without the proper license.