Until you review a title report and survey all the responses you receive will be speculation. 

Mentioned I sweep the money out of the account as soon as I get the text from my bank.

They have to follow certain rules to be able to receive section 8 and if they don't follow them can lose their eligibility.

If your property received its certificate of occupancy after 1983 you might be exempt from rent control altogether so it's also worth looking at that possibility.http://www.bayhousingwire.com/oakland/owner-occupied-duplexes-and-triplexes-now-subject-to-oakland-rent-control/

But know that the property is a tool for you to receive money from.

I’ve been receiving offers, but they seem too good to be true.I was wondering if anyone has any advice on how to spot a fraudster.

You can try sending direct mail, door knocking, cold calling and sending text messages to try and get hold of the owner.  

A civil penalty so collected shall accrue to the state and shall be deposited as received into the General Revenue Fund unallocated.501.211 says:  Other individual remedies.— (1) Without regard to any other remedy or relief to which a person is entitled, anyone aggrieved by a violation of this part may bring an action to obtain a declaratory judgment that an act or practice violates this part and to enjoin a person who has violated, is violating, or is otherwise likely to violate this part.(2) In any action brought by a person who has suffered a loss as a result of a violation of this part, such person may recover actual damages, plus attorney’s fees and court costs as provided in s. 501.2105.

It is not assurance but rather, it is the requirement of the amount due to assure that when received, the servicer/lender will release their interest.

In addition to the excellent feedback you received already, I'll outline below some of the benefits of using a Solo 401k instead of a self-directed IRA in case you are eligible.