I even heard self employment tax on top of it all.

Maybe even look into buying/selling or flip strategies to build wealth.While I realize what it means to be self-employed as I successfully ran my own IT consulting business for over 10 years (in the past), I really want to know how you spend your time on a daily basis to build your business.

I have a great credit score and employment history, so there shouldn't be any issues with actually getting approved. 

And I'm in a good employment and income area. 

Knob and tube wiring...I have a harder time believing that was just missed, but maybe...That said, if it could have been found I'd complain to whoever employs the inspector I used; not in a "OMG I'm going to sue" way, but in a "I have some concerns about the inspector we used, they missed some pretty obvious problems..." way.

Get a federal employer identification number, open up a business-only checking account, and keep your personal finances out of your LLC accounting books.Create an operating agreement.

Call the employer.

The form of the security (whether it is a formal certificate or nominal interests in the physical assets employed by the enterprise) is irrelevant.

One thing I think I see missing is the 3.4% tax added to fund the Affordable care act that is separate from fed capital gains and whatever state cap gains tax which isn't an issue in Fl but could be as high as 10%.On the other side of things - if you're talking about flipping activity you're talking ordinary income tax but also self employement tax as well - another 15%.So 50% might be an extreme worst case scenario but apart from other tax saving strategies the sting can still feel that bad.Takeaway - strategize and pay only what you have to legally.

If they have a more established rental history, have been employed longer or their employment is stable, the more likely you can collect if something like this happens (and the more likely they are to pay/not damage items so as to avoid this altogether).