It's not a good sign, but wouldn't be disqualifying for me. it does let you know that the applicant is comfortable refusing to pay an obligation.  

They weren’t comfortable” Don’t do it.  

We built the bosses sister a 3500 square foot home. 4 bedroom, 2 1/2 baths, cavernous kitchen/dining/living room with 25' cathedral ceiling, massive laundry room, massive entry, office, gym, multiple pantries and closets, 2 car garage with 2nd floor game room.  

And so there were many reasons that I never felt personally comfortable with pulling the trigger on them.At the same time, you want to know how the investment is actually doing.

You need to be comfortable that the value of the real estate you report to the custodian will pass an IRS audit. 

Visiting the property is up to you and your comfort level with your property manager, home inspector, etc.

Choose the market you are most comfortable with.

These markets are very large in NC (comparable and larger than Fayetteville) providing for great economics as well as a more diverse employment base.Doing a renovation is not as intimidating if you have the right team that can provide you comfort with before-and-after's of other projects they've done, plus accurate $s surrounding those projects.

However, over the years there have been several favorable rullings with regard to other structures (especially types of trusts) that have most folks feeling comfortable with this practice.

If you're comfortable meeting in person, I would follow up with an email outlining what was said in person to the tenant with the resolution of the conversation also in the email.