I'm also looking into doing a cash out refinance or just doing a standard loan on my next property.

(Quick Side Note - A similar question I see frequently regarding pregnant women is "well, once the child is born the renter will not qualify based on my occupancy standards, should I rent to them?"

Based on their website the standard payment for a 3-bed is $1,423 but that seems really high to me.

Any other possitive factors  - stable tenant base  - alarm systems  - regular checks on the property  - no pets  - Lead safe certification  - newer roof, plumbing, electric, etc..Anything to balance off the lossesBe prepared that it may end up in a non-standard (surplus lines) market for a couple of years.If you did not have flood coverage before, see if they will continue the current policy if you get Flood coverage and increase the property coverage deductible. 

I have mine in standard money market accounts.  

Tenants frequently do not take good care of the properties, and the government requires certain standards for the condition of the units.

That's standard beginner terms. 

Check local and state regulations and what might be coming soon for building standards and regulations for a RCFE.

A while back I had one in my personal home that did that.An American Standard brand.

Standard practice and the veriage should prohibit the person from doing any deals directly with the parties you are in negotiation with.