If you are to buy the place, it's a simple 3-step approach: (A) Factor in the costs to your purchase price(B) Institute all leases as maximum 12mnth term. 

They’ve at least been willing to outline what the step‑ups look like so I’m not blindsided later.

Many tools rely on a single national database or applicant supplied info, which can miss records, lag behind court updates, or fail when data does not match perfectly.Why reports may come back with no hits:Most records originate at the county level first.Some courts do not update national systems regularly, if at all.Reporting laws require exact name and DOB matches, so slight variations get excluded.Automated systems cannot legally fill in gaps, they can only return what the database shows.Depending on state reporting laws, self reported records may be excluded if they fall outside what that state legally allows to be reported.Why self digging is high risk:Googling names, court sites, or social media steps outside a compliant screening process.Any information used in the decision making process must be accurate, verifiable, and consistently applied.If an applicant requests the consumer report used for the decision making and the answer is “I found it online,” that is not defensible and invites Fair Housing challenges.When verification happens inside a structured, repeatable process, many operators can move forward with confidence without doing extra digging.

Does this approach make sense as a first step for us?

Quote from @Alex Holmstrom: Flipping is a great first step..

If you require ID, do the extra steps Drew said and have cameras it'll weed out majority of trouble. 

I run 10 Section 8 BRRRR doors in Birmingham, AL so I can share some real numbers on your three questions.HQS inspection tips: The most common fail items I see are smoke detectors (must be in every bedroom and on every level), GFCI outlets in kitchens/bathrooms, peeling paint (especially on pre-1978 homes, which triggers lead paint protocols), and handrails on stairs with 3+ steps.

First step is pick a target price range and rent range and run a few sample deals until the math clicks.Are you more focused on appreciation or monthly cash flow and what kind of capital are you looking to deploy on your first deal?

Also I put up a porch with a covered roof at the side door instead of just a little step platform with nothing over it, if that might help a bit.Here is some information from the Loan Application we signed at the closing:30 year conventional loan bought 06/18/2020 Loan Amount $95,200 Sale Price $ 112,000 Interest Rate 3.375%Homeowner's Insurance $31.73 per month for 3 mo. $95Mortgage Insurance $21.42 per month for 2 mo. $43Property Taxes $139.08 per month for 5 mo. $695Here is some information from the monthly Loan Statement:Explanation of Amount DuePrincipal 183.82 Interest 237.06 Tax and Insurance 209.34 Regular Monthly Payment $630.22Account InformationInterest Rate 3.375% Principal Balance 84,288.81 T&I Balance 1,177.87 Maturity Date 08/01/50Thank you for any help figuring out how to get lower monthly payments!!

But our first step, find out why your expectation was different.