There's no need to waste time and energy trying to train a problem tenant.

Your going to share a wall/yard/property with these people.

Upon reviewing paperwork, noted that the foundation is check to have issues and cracks on the wall.

From personal experience, self-management is a tornado of lack of experience, emotional calls and wasted time.

Don't waste your time. 

Every time this happens, we have to see the judge and waste another 4 months.

I undertook a pretty thorough cosmetic rehab of the property, which included new floors on the main level; fresh paint on all walls, trim, windows, and doors; new countertop and sink in kitchen; new stainless steel appliances; new tub and surround and painted/updated bathroom; and epoxy paint to floor of basement.

If you look at this guy's kitchen, while it's nasty in terms of filth, he doesn't have wasted perishable food just strewn around.

Sharing a wall and yard with a neighbor tends to bug people and can cause them to move more often. 

I was under the impression there are a lot of ways to purchase a home without 20% down.I'm also concerned with wasting time at a local big bank to get rejected.