If the occupant is in jail it could be argued that he had no way of removing the possessions & might not have received notice of you taking possession of the property.

You're the lender, but you keep the deed (title, for a car) in your possession.

There's pros/cons to both..definitely talk to a lawyer for your personal situation and comfort level.As many have said here - your best bet might be to look into trusts (although there's some complications there as well) and taking possession as LLC will limit your lending options initially.If you're just getting started, consider taking it in your personal names and look into good insurance.  

if you give notice to the tenant to cancel the month to month can the landlord take possession in 30 days from notice>

You have to go to court, get an order, have it served and after a set period of time when they are physically removed from the property, you can change the locks.In many places, if the commercial tenant misses even one payment, you can change the lock and take possession of all the fixtures and chattel present (note: Any leased equipment stays the possession of the leasing company).Commercial is much less regulated then residential and is much more of a contract / tort relationship.

For better or worse, I know modular owners who sell homes + land to people in much the same way, and simply evict and retake possession if (when) the renter/lease to own'er defaults on payment. 

By the way, a FELONY charge is not simple possession of a joint at a Bob Marley concert...

Part of my application asks them what construction skills they possess.

Judgement was granted for possession of property and posted on the door as per state law.

If it is not in writing the Lease is automatically a Month to Month Rental Agreement.When we evict someone we are actually evicting not just a tenant but anyone who is in POSSESSION of the house.I’m sure most of you have seen the movie Pacific Heights.