I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

If not, then these people will be arrested when it comes to light.

You should take advice from experienced people here who have not motivation to lie to you.

One think I sometimes try to remind people is that EVERY APPLICANT qualifies for a rental!

People will always vacation.  

The only caution I give people is to make sure they have a solid income to where they won't feel the pain of the loan. 

Narrow it down to like a very small amount of properties and just give the people a call, write a letter, or have your assistant do the same.

I only got 2 people from there and they both seemed a bit shady.

Just cause the market is "red-hot" as you've said, doesn't mean people will over pay by 33%. 

Follow the advice you have been provided by great people and real estate legends below, especially from the likes of @Jonathan Green and @Nathan Gesner and you will buy your first rental property within the next 3 months.Goodluck.