I already had a background in fixing up places, but I really didn't start diving deep into renovation until after we had the first property.I know it's terrifying.

Coming from a farming background I think your best bet is option two.

Example one of my standards is a minimum of a 600 credit score but one has a 560 and the other has a 770 or I require a background check but one roommate is a student from overseas with no SSN for a background check.

we have already told friends and family they will be subject to the same background check process but we prefer to not put ourselves in that position at all and will discourage them from thinking about the property for their potential rental.  

So my question is, do I go with my instincts and take the usual deposit or do I credit and background check the father?

We're thinking to start with smaller deals with ARV's in the 125k-150k range, since that is a range we can comfortable work in without needing outside financing.Although we have owned several homes over the years, are handy with a hammer & saw, and have a solid background in business and finance, we have not actively pursued investing in Real Estate.

This fee will cover credit, background,and initial valuation reports (all of which will be sharedwith the borrower).

What's your business/finance background?

in some areas home prices peaked in the 80s and 90s  think Rochester NY for example or Buffalo.. in some areas real estate seems to make new highs then 10 years later it makes new highs again  think SF bay area , at the end of the day building materials are up land prices even being zero  it cost more to build a home than you can buy an existing one in a huge swath of America so until that changes.. who knows.then in the areas that are slowing but surely turning into rental dominated markets  ( we know which ones those are ) those values will really only move if rents move or investor accept a much smaller return that what they want today which is basically 6 to 10% COC with 20 to 30% down.. 

Higher crime rates seem to be a feature of many towns that are dominated by the military (ex.