I've heard of bank officers telling an investor to do similar practices to get underwriting approval, but I've always thought it was fraudulent whether or not a bank officer was involved.Tax evasion is a serious offense that does get prosecuted. 

@Fernando Enrile yep I like what they said about finances being defensive(Expenses) and Offensive(Income), if you have great offense, but no defense you’re still not going to save any money.

I guess it's true that most criminals get caught over simple things (like using your real name on a forum and asking for advice on breaking the law).

Also check to see if there are outlets in the bathrooms - some old houses don't have them and that is a pain for tenants.Don't worry about the pink and blue tiles, it doesn't cost a ton to get the tile glazed White if the colors are really offensive.

Ryan Dossey  or with in 500 feet of a school.. mandatory prison time for certain offenses taking place within 500 feet of a school in many jurisdictions.

I don't think so now you do a criminal search and find something that is different.

I asked the owners directly if there any criminal activity at the building that I would need to know about and they should me nothing ever happened there.

Sandra,I assume that you mean the tenant is allowing another criminal to live there and that criminal is under house arrest either in lieu of prison or waiting for a prison bed to open up.

I use residentresearch.com Very good and report on evictions, criminal and credit.

I have found that issuing clear screening guidelines up front with the application that includes requirements such as verified income three times the rent, acceptable credit, 2 years of favorable rental history, no criminal record, etc.