Sounds like their combined income likely beats your other tenants.Your gut is probably your best bet and you need to go with it. 

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.

Not to mention the very long list of the horrors that density of housing combined with poverty has brought all but 100% of the time over history. 

Then you can combine or exchange for a better or more consolidated/ better proforming area.  

Quote from @Otis Clayton: Quote from @Jake Baker: @Otis ClaytonWe typically fund with a combination of Hard Money and Private Money. 

I don't love the idea of having prepayment fees and a mortgage on my free and clear property but if I do a combination of things I would be able to make an above garage apartment at house 3 for 15k-20k that rents out for $1100-$1300.

Higher returns means some combination of higher risk, effort or barrier to entry.

Combine this with interest rates that are near the high for this century and cash flow is challenging.  

In the future I will likely use a combination of a leasing agent for doing showings and a virtual assistant for handling leases, marketing, recording rents and calling for collections.

The key element is :"the intent of which is the transfer of title"in law, the intent can be the determining factor, it doesn't have to actually occur or be done in a specific manner.You can speed because you have your foot down too hard on the pedal or you can speed because you are going down hill.