They can afford a small rent hike to cover you tax increase.

I can see on the applications what people make on average - rent has to be afforable as well; that does not mean cheap, but it has to be possible for people to afford rent.

however, that doesn't mean the tenants can afford another $50/mo. 

You should only do what you can afford.

Have as many BR and Bathrooms that you can afford (i.e. get financing for). 

I have been looking into other skip tracing options for seller lead lists, do you have any recommendations for affordable skip tracing websites or services?

I would take the first opportunity you can afford to renovate that unit to get them out and start over. 

Many years before I became a realtor I was a USAF veteran working an IT job and was bedazzled by the market at the time and a "perfect" house and bought at the tippy top ceiling of my affordable price range (chasing that white picket fence dream, etc.), using my VA benefit. 

I would ask for pay stubs and/or bank account summary to show he can afford it.

Anyone know an affordable way to go about this?