My model is buy and hold and currently I am not extremely concerned with cash flow in the short term, but rather focusing on long term wealth, residual income in retirement, and setting up my heirs for the future.  

Keep in mind, the AC/Heating system will have the same smoker's residue as the interior of the unit. 

My research showed me that anchor type companies don't typically move into a rehab shopping center until they see 70% or even higher residual occupancy. 

I stopped working for someone else at age 42 and went into real estate full time with zero residual cash flow coming in monthly, though I did have cash and access to cash. 

Mortgagor complaints: The mortgagor might find some defect in the property after taking possession, such as a leaky roof or rotten siding, an environmental violation such as heating oil residue, or a zoning or building code violation – and stop paying until you fix the problem.

And I love residual income even more.

At move-in I use a two column inspection report (move-in & move-out) and note the conditions at move-in.Tenant and LL sign and date.Come move-out, drag out the inspection report and walk/inspect with the tenant, again both sign & date.Get the new address to mail the "deposit refund" (don't even have check book with you).Here in Calif, we must respond on or before 21 days after move-out with an itemized repair list and the residual deposit being refunded.

If you've experienced no costs, the guy left willingly and left the unit in good shape(no residual odor, etc), I don't see any reason to penalize him financially.If the guy takes you to small claims for the deposit, how are you going to prove that he was indeed doing this in the unit?

Max dti for automated approval through GUS is 47% housing ratio and a 57% back end ratio (and this is pretty much everyone, lenders don't manually underwrite unless there is an automated approval issue) - even then 31% and 43% are just placeholders, HUD allows 37% and 47% by meeting residual income requirements and no further compensating factors on R/E loans, and you can exceed 37% and 47% (most lenders will cap back end at 50%, but you can go to 57%) with strong compensating factors, such as assets.  

DTI and residual income, one of those two, is always the primary limiting factor for VA deals.