Personally, this would be a final option since the local market is usually on an upward trend.

We always do a final QC walk-through BEFORE we allow any prospective tenants inside, then we do a walk-through with the tenant when we hand over the keys to notate anything pre-existing, such as damaged casings, frames, etc that weren't in need of replacement. 

And regarding tax returns and bank statements, I guess the safest course of action would be to follow @John Farady's advice and have the applicant submit their 4506T to the IRS, then wait 3-6 weeks before making a final decision.

Real estate is a fine asset class, but so are public securities over a long horizon you are no doubt facing. 

I do not know about where you are buying, but from where I buy, they do a final check for clear title. e.g. did the owners file for bankruptcy the morning of the auction?

Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors Require you to close before a tenant is in place

I'm just not sure how serious of an offense this is, is it a fine, warning or do I lose my hotel license right away?

If I have multiple applications, do I process the checks one at a time for those who appear to qualify and go from there (eliminating one by one) or do I process them all and then make a final decision? 

That said it makes sense to give the buyer notice and a final opportunity to tender funds or you can end up in the middle of a lawsuit.

I went to college for Finance and moved to Philadelphia after college to work a finance job for a couple years.