I am screening my 1st tenant and she seems good on paper ... so far. 

Hello,Does the IRS require you to have the original paper receipt for proof of deduction or does can I use a scan copy of the receipt?

The terminology is already in the contract so you shouldn't have to word anything.1) You can say however many days you want but if the market is competitive 30 days is typically the norm.2) All you need is a notary with you to sign the papers.

Make a long story short we found a lawyer, my lender got in contact with the lawyer drew up the contract and in 35ish days seller and I where at the lawyer office signing the paper work.

@Scott Jensen makes a good point, consider looking at a Roth IRA since you're showing paper losses?

The owner could provide their own finacing for you and if you show them on paper how much more they will make and lower their income claimed each year. 

Realize that people are not 100% on their application, LEARN how to spot B.S & if you see it, mark it, give them paper notice and immediately FOLLOW UP.

They stated what you all mentioned, it's a matter of how it's all done (proper paper work, disclosing if real estate agent, etc.).

The problem is the amount of learning you'd have to do just to know what a good non-performing note looks like THEN have to go through foreclosure only to move in is way more effort than you'd have to expend to just purchase a house traditionally.

To make it work for her and to have a good conscience for yourself, try looking in the blue pages of an old paper phone book.