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

Legally, of course.

My question is does the mortgage insurance company even have a legal position to do that?

If so, can I legally run a background check on the tenant?

In addition to what Ned mentioned, you will also have advertising, entity maintenance, legal fees, evictions, court costs, periods of high vacancy, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), etc, etc, etc.

I understand this is not a legal forum but would like to hear from experience investors.What is the best way to handle finders fees; i.e if you have an associate looking to move a property and you bring her a buyer, how do you receive a fee and protect yourself in the process?

It's called networking and it works legally, and wonderfully.Let me know if you have further questions, or would require assistance.Thanks and Best Regards,Scott Cook

Thanks, By "yellow letter" I meant a letter that is hand written on a yellow legal pad paper, as a more personal touch (to stand out from the other normal ones they get) and sent in an invitation sized envelope.

A common rule of thumb is that all expenses, including taxes, insurance, utilities (at least when its vacant) vacancy, advertising, tenant screening, maintenance, property management, tenant damage, legal fees, etc., all add up to about 50% of the rent.

I doubt that's restricted to MO.