Not every tenant is perfect, even if they seem to be when applying. 

We came upon a couple questions that I thought the biggerpockets community members would be a perfect source for.

Perfect!  

I guess I just wanna know the absolute perfect way to go about this, so as not to screw it up or get into legal trouble.

@Lawanda King ,This is pretty standard, but if you would simply swap out the words contractor and contractee and replace them with Buyer and Seller, it will make perfect sense.

This is exactly what I was looking for.You have to play around with the filters a bit, but this is perfect.

@Roger Lin I think it's perfectly fine to buy for strictly cash flow.

It's 500sqft larger, had 4bedrooms, has higher ceilings, had all matching appliances (included the fridge and microwave), and a MUCH more updated kitchen for 180k.

If the property condition allows, you can set the bar at "nothing less than perfect credit" which weeds out most questionable situations, even ones you feel may work out well. 

Raising the rent is the wise choice, I would personally go to $800 if that is what the going rate is, however, you may choose to go to $750 to match the other unit (if comparable quality).