Make sure this is legal in your area first, lots of places restrict them. 

So, the legal answer is, you can do that.

I'm trying to figure out if there are legal ramifications for this type of thing and if so how does one go about pursuing it?

It sounds like I'll want to get the lease and all legal docs signed off by a professional, and we'll need some accounting help to make sure we're making the best moves financially. 

Am I legally able to take a conditional nonrefundable deposit from a section 8 tenant to prevent her from renting some place else other then mine during/after her end part of section 8 paperwork processing stage (provided she will get the final approval by section 8 that is; she told me she has been a section 8 tenant for years and she’s just being transfer from one city to another; she verbally agreed that she‘ll rent my place)?

We ran out of cash because we had accepted his overages instead of questioning them like we had a legal right to do, and it took a couple of months to get new financing.

The rest is title insurance (real high in TX) legals, doc prep, recording etc. all cash

to answer grandwally- Land acquisition legal definition is the government can acquisition your land for government use such as roads, bridges etc.But what I did is... say You want me to find you 6 acres to build on.

There might be some structural issues or something, but I am worried that there is something legal going on.

Legally, of course.