Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.You're running a business and you've made a business decision. 

I live in Phoenix and my business partner and I put on a couple local forums for investors like yourself to network.

Having the seller carry a second is not a problem for the first, as long as their business with you is finished and the loan has closed.

It's a business - acquiring/building, managing, and growing a business. 

I am getting a mortgage for about $175k, putting 70k down, and the rent of approx $1900 is a near breakeven cash flow investment when I self manage.I am sure there are investors out there getting better returns than this, but I am a busy working man with a family and I am playing the long game.

I dont know your business model exactly but I assume you collect some referral fee from the supplier?

I have found enough business and made enough money not to need to expand outside of this market.Section 8 is a whole different ball game but I find the program is unique in that it's a 3-party relationship adding the variable of a government agency.

I think you just have to work it in as the cost of doing business. 

Quote from @Matthew Cook: Dig into those comps with a realtor doing business in that market.

PMs are busy - if you email a PM and say "Hey PM, I'm looking at 123 Main St. and I think it will rent for $1500 a month, does that sounds right?"