however, that doesn't mean the tenants can afford another $50/mo. 

You should only do what you can afford.

Have as many BR and Bathrooms that you can afford (i.e. get financing for). 

I have been looking into other skip tracing options for seller lead lists, do you have any recommendations for affordable skip tracing websites or services?

I would take the first opportunity you can afford to renovate that unit to get them out and start over. 

Many years before I became a realtor I was a USAF veteran working an IT job and was bedazzled by the market at the time and a "perfect" house and bought at the tippy top ceiling of my affordable price range (chasing that white picket fence dream, etc.), using my VA benefit. 

I would ask for pay stubs and/or bank account summary to show he can afford it.

Anyone know an affordable way to go about this?

Can you afford to quit?

BUT BUT only if the numbers work, and you can afford it.