@Dan Shelhamer I would not treat them the same the foreclosure affects there credit score and as long as they still met my minimum credit score I would rent to them.

Mainly came here to work on personal finance and fixing my credit AND then, let's get to investing.

I have a decent credit score (>750) but my brother has a much lower score (low 600's) due to some medical debt he incurred many years ago.

Now this is when it becomes a little difficult I’m trying to get approved for FHA Loan with the 3.5% down and it comes down to my credit being a little beat up I have enough for the down payment and Income to debt ratio is pretty high.

I'm dealing with a similar situation right now where the previous owner of a building I recently bought put some knucklehead in there to make the listing more appealing, and never did a credit/background check.

Given that I am carrying heavy debt but still holding a 600 credit score.

We have excellent credit and no debt except for our 2 mortgages.

Your LLC can be taxed as a sole proprietor and for the LLC to do as intended ("Limit" your "Liability") you must completely separate personal and business expenses, credit card, bank accounts etc etc and obtaining bank financing may be impacted.

He is what to do:1. make sure you only enter into a lease with the Best Credit tenants. 

I have a duplex in a quiet neighborhood and have a prospective tenant who sounds very responsible, has good credit and income.