I would also check with the municipality for zoning issues on rental terms and allowable (we have areas that restrict rentals to 30-90 day minimums).

You can also defer the taxes by investing in a Qualified Opportunity Zone.

This was the red flag for us.

You are in a sticky situation because you've rented a room to a person who wasn't qualified to rent it in the first place and it seems like a potential eviction case like yours wouldn't hold in court unless like @Christian D. mentioned the property was zoned as a SRO.

County tax assessor, city zoning, if you go under contract, can get it added to survey.

( Township has it zoned as Single family home).Thanks all in advance.

Do the cows wear red bandannas in the bad parts of Iowa?

Btw, I think I need to up my anti from Olive Garden to Red Lobster.

I noticed in the downtown Atlanta area these renovated homes were popping up in some "up and coming" neighborhoods highlighted with red, yellow, green, and purple accent doors. 

So things that are a red flag for me may be fine for someone more aggressive.