If you are a cash heavy investor, then it might be alright, but you are gambling on appreciation and that is something that you can not know for sure. 

@David New it needs to cash flow or youre gambling on apprectiation.

Anything less in this market I feel is a gamble.

This was very likely a fraudulent claim, but if an insurance company has potential unlimited liability and is afraid the matter might go to court, they will settle almost always.  

Most people have not experienced this when taking the gamble, but it's still just that... a gamble.3. 5 or more units is considered to be commercial and fannie and freddie normally are out the door UNLESS you are looking into their small balance loan.

With covid I'm worried the area and price range might be a gamble.

Primarily, when will this end, and when will things start back up again.Which seems to call for decision-making in the face uncertainty (because there seems to be a gamble element to it), like happens in war on the battlefield sometimes.Except your not really at war with the tenant.

Don't even respond to such a fraudulent request. $80k per month income but a 500 credit score. 

The tenant has a scratch-off lottery ticket gambling problem and often comes home with "many"  tickets in his pockets.

In my experience (personally, through networking, and by reading on the subject online), the vast majority of these cases are fraudulent.