@Daniel Pitta In my opinion Background checks are the number one best way to vet a prospective tenant.Many things fall under background checks like calling their employer and previous landlords.Also I know some PM's that like to sneak and peak in their car and see if is junky, if so they is likely how they will treat your property.Also these same people will find an excuse to stop by their current residence and look in the door for the same reason.W-2 paycheck verification.No evictions in last 5 years.Tenants make 3x the rent.If they can't come up with all move in money don't rent to them.They ones that beg and plead for you to rent to them you should run from.Make sure they have stable employment - same job or in same field for 2 years or longer.Get a larger deposit than 1 months rent to encourage them to give you proper notice when they move and that they don't try and use deposit as rent when they move out and that they also leave your property in good condition.

The key is that the builder is a known brand and stable to finish out the development even if an economic slow down happens nationwide.

I have assumed that they are relatively stable for prices but when time gets tough it might be harder to find tenants that meet the criteria.

Also are their any collections or bad marks on their credit report, a lack of stable job history with enough income to cover the rent, low credit score, or any issues with the landlord reference check with their previous landlord?

Secondary market meaning fixed rate financing for the full term of the loan vs someone like myself who owns substantially more than 10 props I have to seek commercial funding which is not as stable - typically 5 year balloons.

They will often be between 50 to 60% when roof, windows, water heaters, heating and air,etc. starts reaching end of life expectancy and has to be repaired to extend shelf life or fully replaced.Many times some brokers do a ( if buyers don't ask then don't tell ) kind of thing to get stuff closed and make their money.

And either buy them courthouse steps or when they hit as OREO  although not sure in your area but our area the foreclosures are down about 70 to 80%... mortgage defaults in our area is all time low.. but we don't have much sub prime and we have no hoody ghetto type areas.. pretty stable.. worse markets the homes sell for 200k or more.. 

If their simply visiting grandma who had her kidney removed and is in a private room fully stable and it was just a convenient vising time for the renter, then I may decline.

My point was look for diversification or stable industries when investing. 

Where would you guys recommend me to invest sub 50k with around 1k in rent and stable tenants?