@Dean Iodice - You do need to find Off-Market Leads.

In addition to the 7 federal classes, this state adds:Public Assistance (Sec. 8, welfare, SSI, TANF, etc), Sexual Orientation, Gender Identity and Expression (including transgender), Marital Status, Military or Veteran Status, Age (except 55+ communities) and AncestryYou can discriminate against non-protected classes, like illegal drug users - but if it has a disparate impact on a protected class, it still may be subject to challenge.If your unit is not de-leaded, you can still not refuse to rent to a family with kids under 6 years of age.

@Franka Hauck - You most likely couldn't put the rental portion into an LLC while keeping the primary residence portion in your name unless the property is split on the deed, or it is setup as a co-op or condo type situation.Keep in mind, the purpose of an LLC is asset protection.

I've been looking for leads for sellers as well, but I can't seem to quite find them.

Term leases serve no purpose beyond allowing your tennat full control over your property.

Texas is one of the rare states (as you probably know California is one of them too) where owning a wholly-owned LLC, though it is disregarded for federal income tax purposes, can have state tax implications. 

I just did this myself on a rental property that was in my name when I lived there years ago to ensure it was in line with my business expenses for tax purposes more than liability reasons.

As far as indicators you mention on uber use,car ownership, and money orders these are all flags that should have lead to better due diligence on verifying her income.

We have a lead from a direct mail campaign where we think the seller is asking well below market price, but a realtor we have worked with seems to disagree, so we are looking for further advice.  

The purpose of the Multi-Family Residential district, also known as the R3 district, is to provide space for multiple family residential development commonly found in an urban environment.