There is no point in having screening standards if you are going to ignore them and try to make applicants fit that don't.That is the reason hobby landlords always get into trouble...they take unnecessary risks by ignoring their own screening policies.

@Orazio Difruscolo On the practical side of the fence, you need to get another job.  

I have been having trouble finding a house that fulfills my criteria that doesn't need some work.

The only part that had me on the fence for a bit was the construction estimate was commissioned by an external third party contractor.

Hi All,I think I am in trouble with finding tenants.

My thought is to build a fence immediately against the alley so that they can't set up camp on our property. 

Thanks Chris,I am not a pro at this and the thing that trouble me is , when you know that  you have contact with the city about this property and the last thing in the< public report> is that it< failed >, then Before you sell you don't bother to make clear those things with the city so that it don't hinder your sale?.

Anyway, a zone change for one little parcel is highly unlikely and not worth the trouble.

Then I look at the condition of the propertyA = Brand new constructionB = 1975 and newer homes with a FULL renovation (Roof, HVAC, Appliances, All hard-surface floors, Exterior and Interior cosmetic repairs and paint, Hardware replaced, New light fixtures, Fenced in Backyard, and more!)

Fenced rear yard.