These low quality tenants are more difficult to get rid of.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Personally, I follow this standard for every application I receive:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)This process has helped me place quality tenants over the years.

We normally do not seek judgement due to the expense that is involved, even after you win you have to continue to renew the judgement every year.We put them in collections and have it hit all three credit bureaus.

These sellers paid much less than what the going rate it today, likely have no mortgage or low interest rate mortgage and do not need to push rents to market value to cash flow.They get solid returns at their current rental values, have minimal headache with current tenants and they don't need to do major repairs to get their properties sold for a solid value. 

Thank you for taking the time to do a deep dive. 2% home appreciation was also a fairly low estimate, it looks like in that area it is actually around 5-6%.

For example you are putting in low grade laminate and all other listings are putting in high grade vinyl.

Instead, it works like a credit and goes toward some of your upfront costs.

A property could be cheap but be located in a low performing market.

Thanks Jack for your response, I am trying to avoid condo because of the low appreciation issues.