This makes me very grateful that I live in TX.My main question is that other than screening for past violations, how does a landlord actually go about making sure that tenants don't do any of those things?

We have used HML's many times over the years, mainly because we do mostly spec building.

Main Question is......:: Is there someone educated enough on this situation or one similar here to advise me if I'm going to be turned down by FREC when I appear in front of them in Orlando and be ordered to wait to my case is completely over and dismissed and until I'm done completely with my drug court?

I think the main things will be:Did you know of any lead paint?

I will ask their intentions to renew, as well as problems they may notice (which maybe get missed on an inspection report.. e.g., drainage or inoperative appliances).

Mainly the sellers.

What many replies are missing is your main point which was if your income potential suffers you can ride it out much more easily than someone leveraged.

My intentions are to buy the HUD property (or a wholesale property), refi, then sell it on lease option and repeat.  

I agree with you in that the main benefit would be the costs associated with HML.

Here's what I know:The city of Corpus Christi has a 3-yr apprciation rate of 5.9%The city of Corpus Christi has a 1-yr apprciation rate of 6.7%Zillow predicts that the neighborhood will appreciate at 7.4% in the next year.The house is on an island, so expansion is limited but has not yet capped as there are still vacant lots scattered in this area.This address is in the best school district of the metro areaThe city experienced 10% net population growth 2000-2010The city's two main college campuses had a combined enrollment of over 22000 students in 2011.The city's top ten employers are in the sectors of military, education, health care, contruction, government, and grocery (local grocery chain headquartered there)The house is a 3 bed 2 bath, which is on the small side of avg for this area.What more what YOU need to know before deciding to invest in this area?