For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Your best offense is a good defense.

I think this is proven that even in ponzi criminal case, if asset has good valuation and the law is being done properly, we will get our money back as investor.

PS Rochester and Buffalo were ground zero for much of this stuff also there were groups buying those homes for 10k packaging them up and selling them for 80k to investors from England. the city / state finally cracked down on that and there was some folks that got in trouble on the criminal side of it.. you can google it.. wont mention names but you can find it if you dig deep enoughBut this is nothing new.. buying hood rates for pennies and selling them for dollars to foreigners and unsuspecting out of state folks. 

For example a tenant has to meet certain qualifications to be able to rent your property: income, credit score, evictions, rental history, criminal history, etc.

According to this NYT article "It can cost as much as $10.5 million for a title-contending starting offense and defense in the new Power Four conferences."

This should be treated as criminal behavior

DEFAULTS Tenant will be in default if: (A) the Tenant don’t timely pay rent or other fees and charges they owe; (B) Tenant or any guest or occupant violates this Lease, property rules, or fire, safety, health, or criminal laws, regardless of whether or where arrest or conviction occurs; (C) Tenant abandon the property; ....When Tenant is in default, the Landlord has the option to declare the entire balance (all outstanding balances including but not limited to invoices, rent, cost due to damages/abandoning the property) payable hereunder to be immediately due and payable; the Landlord may exercise any and all rights and remedies available to Landlord at law or in equity and may immediately terminate this Agreement.XVI.

That stuff is for criminals.

As stupid as my step mother is even she wouldn't go for it unless she and her criminal minded sister coinspired together again my father to strip him of his pride which is what shows and I have factual evidence to back my verbal statements and arguments against those who took advantage of a hardworking man who provided everything for his loved ones.