What problems do you see me running into as far as not renewing their previous situation since their really isn't anything in writing.

After running conservative estimates I am only seeing possible 200-300 cash flow  per month on the properties I am analyzing (total!

Nonetheless, I have purchased 3 properties running my numbers under these terms.

I feel like there is a way to do this right, not just a verbal agreement but something that is legally binding where you can evict them if you run into issues- but it is a grey area since they'll be renting out a "room" and not the whole house.

Run, do not walk!

My Realtor says to rent it to others so they can own/run the business. 

What I was good at was running a business, I started my own at the very young age of 19, and what I did have was the desire and determination to succeed at my new goal at that time - real estate.Start small and flip a house.

Im a general contractor by day, and an operating engineer at night in Staten Island, NY.

and just travel around the world while running my business (officially, have my place in SF.)Congrats on going through the fire, building your first place.

It will run you around 4K for a full analysis and recommendation but if "high income" is really high income that 4k could be well worth it.