@Hyung ku Kim what you are looking for is an Adverse Action letter and RentPrep can provide this to you since you ran the report with RentPrep.

Any adverse factor - the condition of the house, the neighbors, the neighborhood, the market, the economy, the tax liens, the barking dogs, the gunshots - can be overcome with the right price.

Do we need to send adverse action letter?

Acquired a property through adverse possession.

He totally wants me to remove the portion about the property being "free from hazardous substances, and from violation of zoning, environmental, building, health or other govt codes or ordinances and that there is no material or other known defects or facts regarding the property that would adversely affect the value of the property."3. 

how risk adverse?

Basically, you have to be a total slum lord to ever get adversely impacted by it, and that's only if your tenant is diligent enough to follow the process, which 99% are not. 

Say you want $80,000 per year and and are risk adverse out 5 years.  

If you are risk adverse real estate, (especially out of state) is not for you.

When you send a rejection letter do you say why or just have that generic "Adverse Tenant Reaction" letter and checkbox something on the list like "past judgements"?