Since I paid cash initially, this cashout is very large compared to partial down-payment investments.

I was floored how some people live initially but I’ve grown to just accept slob mentality.

The challenge initially is getting the property into the LLC's name.

This is from the statute "197.432 Sale of tax certificates for unpaid taxes" See section (14):(13) The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate.(14) Any holder of a tax certificate who, prior to the date 2 years after April 1 of the year of issuance of the tax certificate, initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at a tax certificate sale.

Does your HR department verify employment and income, or do they source it out to companies like the work number?

I would use this as an opportunity to get them all out.If one of the tenants wants to stay, make him apply and verify he can afford it on their own.

Systems must be in place for the work and credibility of everyone to be checked and verified.

.), but have no clear answer on whether our basement could qualify as a 3rd bedroom and the black and white to verify. 

The cash flow might not be as good initially but the returns over time may actually be better and the extra expense up front will be worth avoiding the trauma of dealing with extremely low end property and the issues that come along with this asset class.

It means you can't reject an application based on their source of income, as long as it is legal and verifiable.