I call the process "thinning the herd", and each year I evaluate the property performance and either take actions to increase the individual property performance or sell the under performer. 

It really depends on what you are looking and I think your thought process is correct.

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.

I can just give you some data to guide your thought process.

Do your homework first - then you'll be ready for a more meaningful conversation with a landlord.Best...Thanks for your response. so I have researched the rates and I understand that screening a tenant is crucial. mu biggest concerns are the carrying costs until a tenant is filled as I’ve heard the process can take up to 3 months to find a tenant.

We process, underwrite, close and fund the loan.  

Here's an example process and timeline for New Jersey: https://www.doorloop.com/laws/new-jersey-eviction-process

I just went throught the entire screening process and its more like $6,800. 

Additionally, I expect applicants to follow instructions in the advertisement and application, to make and keep appointments, to show up on time for appointments, dress and behave appropriately at appointments, and in general demonstrate throughout the process that they are someone that is easy and pleasant to do business with.

We had the same thought process when we started A Blind Pig.