Nobody thinks it can happen to them, but many have been financially destroyed because of this. 

I typically ignore student loan and/or medical late payments.As long as they aren't delinquent a lot, can afford the place (with verifiable income), have good landlord reference(s) (aren't needy, paid on time, or paid late fees if they were late and didn't destroy the property) and don't have any evictions, then they're good.If the first guy qualifies, let him know, set up a date to get the lease signed and then mail the old guy his fee back since you didn't process it.

The 2008 Crash did destroy the value of my Rentals, but, I continue to work my way out of that hole with my remaining properties, which have all recovered and greatly appreciated in value.

Also I'm sure the upset home owner will then destroy the home in every conceivable way possible, making the value plumbet.

If someone came to me with a good reputation and history of reviews and offered me over market rate (as most arbitrager's do) AND offered to take care of all non cap-ex maintenance items while having the home cleaned every week and available for me to go in between bookings any time I want (whereas a long term renter often disappears into the home for years and you don't see anything until two years later when it is destroyed) I would rush at the chance.Arbitrage is a pretty sweet deal for landlords, so long as you're partnered with a trustworthy host.

You can absolutely get destroyed buying the wrong multifamily property.

Will they stop paying rent after a couple months and destroy your property?

It includes such things as extra costs if a local building code (sometimes referred to as "ordinance or law") requires a rebuilt home to have a feature not present in the home that was destroyed.

in my business I have come to understand that those who steal or destroy or harm others are doing it because they can, not because they do not like you. 

They don't get destroyed, condemned, or somehow cancelled when people move out of them.