She also has a habit of not paying her utilities.

You could make a fortune on a "0.5% rule" property or lose your behind on a "2% rule" property, and in fact I personally have done both.Bottom line is there are many factors to consider when analyzing a property ... any rule of thumb that tries to shortcut this process by leaving out these other important factors is likely to do more harm than good and therefore should be ignored IMO.

I know their habits can present dangerous living conditions and if they do not clean up...then yes, they do need to find another place. 

Even if you were able to get them habitable, the rent cashflow makes little to no sense, mostly due to economic vacancy.

And they seems to have a habit of moving from state to sate to state on a fairly regular basis.  

I would have an empty unit, inspected and found to be vacated and habitable, as part of my closing stipulations.

Bad habits rarely go away.

You don't know if his new career choice in his first week is trafficking sex slaves through austin....Or if he has a nice habit of blasting music at midnight....You get the point.....Someone without a steady full time job/school has proven trouble to me in tenants with too much time on their hands....

My focus will be on committing the tried and true methods of deal analysis to habit, and then integrating my creativity.

I usually get rent on the 10th-15th of each month and want to reign that habit back in by going to a $75 initial fee with $10/day additional.