Buying something and renting out rooms etc. is totally fine.

We get $2300/mo for the 2 bedroom rental bringing our total cost to list there to under $2000.

So the total cost of everything was $44k.

I had suspected after my limited online research that the tenant might be responsible for a least a portion due to the clog and lack of informing me the toilet was not functioning properly.

Anything less than $875k (less selling/closing costs) becomes “boot” and is taxable up to your total cap gains and depreciation recapture.To avoid tax, 2 rules.1) replacement property price must equal/exceed the sold property2) you must reinvest All the cash proceeds from the sale

One of their points was that I was trying to dodge my responsibilities as landlord because of a question I had posted in an online forum. 

So I’m wondering how that would work because I need to cover the down payments for the total amount I need to borrow rather then just the purchase price.

In many jurisdictions this will be part of a searchable online database. 

I have tenants that are landscapers (total of about 10 of my tenants), handymen, truck drivers, tow truck driver, install flooring (2), etc. 

You can find a template online and tailor it to your specific situation.