you need a vandalism rider.. and if it was a tenant.. then the insurance company will usually deny tenant abuse claims.. but if it was kids or something like that then your Vandilism rider should cover you.I did have one tenant of mine do so much damage my company covered it and went after the tenant criminally.. not sure on what charge but it was a 45k claim on a 110k house and it was only 3 years old. 

I conduct credit check and criminal check which includes previous evictions. 

@Christian Scalla no offense but the fact that you ask this makes me think you are not ready for commercial investment.

I have seen deals die a day before they were supposed to close because the wholesaler was not entirely truthful to the escrow officer.Quite literally, the escrow officer is sort of like your criminal defense attorney.  

Please don't take offense to this because none is intended, but I just want to help you out..."

Michael,Not sure what the 'offense' is.

I am going to run his credit and criminal background but here's my general question:If I do rent-to-own with 2k down, I could apply the difference between 900 and 650 toward his mortgage.  

I ask them questions about bad credit and then make my call based on their response.Criminal Background Check: Would you rent to tenants convicted for sex offenses, felony theft or violent crimes?

You must apply the same criteria to ALL tenants, to avoid discrimination.After you review the application, (submitted when the person said they would, not 5 days later), have them go to a tenant screening service like NTN or Tenant Reports.com and have them pay for the criminal and background check, the credit check, and eviction history.  

Others probably cannot get licensed do to criminal records.