My concern with rent collection service is potential chargeback, specially if it's paid by credit card. 

I've never required a security deposit and only have had a few small incidents in the last 4 years, one of which was resolved by the guest admitting their fault and making restitution, and 2 in which Airbnb refunded me for a damaged couch and another for a stolen watch. 

I've thought about plastiq.com or something similar to get cash from my credit cards for 2.5%. 

-Credit card debt $100k-Bought a multi-unit property in 2015, live in one unit, and did major renovations funded in part with credit cards.

I got started with $130k in balance transfers(credit card capital).

If you don't have the cash to finance the reno you could look it short term cash loans, your credit cards or more than likely the safest option of just selling it As-Is to someone who is more equipped to handle a project like this.

I understand he doesn’t look legit but there’s not much for me to report if nobody has actually lost money or had their identity stolen

Yes, it can be done, but you cannot last long when you build a house of cards.

If you want to offer an incentive, I would much rather offer something like a $50-$100 gift card upon lease renewal, if they’ve paid on time every month for the whole year.

With those proceeds ($75k after fees, no capital gains for residency) I have:- Paid off $25k in credit cards, now my only "revolving debt" are balances I'm paying each month.We- Installed a radon system for our new home (~$6k; historic property, have a toddler and don't want to risk anything for his health, you folks with kids know what I mean)- down payment (25%) and finance fees totaling $38k for a triplex that will net $1000 a month, not accounting for anything other than PITI.