I've worked in network for decades and there's lots of issues here.For the owner, you could provide a subscription service for each tenant & deny all other access, BUTif all tenants connect to your modem or router, you create a security risk for everyone.Pre-wiring would require a setup like:ISP==modem--router--- to units and this generates access from one unit to the other.for a more secure layout you need an extra router for each unit and someone to set a unique address for each router - - and this isolates each unit from the others.In either case, notice there's only one ISP so everyone has the same level of service and you'll need a big bandwidth to support multiple units. 

However, I believe it may be a disservice to the newby's to deny the big picture, or sugar coat things.

They will also return your earnest money, should you make a reasonable effort to secure financing and ultimately be denied.  

Me personally, I would deny their request or find a different lender.

I personally, would send an email to seller and agent, acknowledging the request, then denying it based on it being fraud, and should the seller decline to close, that info would be forwarded to seller's lender, RE commission, etc.

Just a bit confused as to how to deal with multiple applicants who may meet all our requirements and how to legally choose one and deny the others.I live in Indiana and don't see anything specific in IN Fair Housing laws.Thanks for any help!

You should have a clause addressing noise and disrupting others, that applies to everyone.You already have a clause addressing damages and financial responsibility.What you can require is that guests register or that you be informed, then that you have the right to disallow any guest for cause, visitation not unreasonably denied.

Interpreting the information you find, putting the "puzzle" together, and making your approve/deny decision takes a little effort initially, but gets easier and faster with every prospect.

Is it just the simple fact an eviction exists that I should deny an application, or should I look at the nature and facts of the eviction and consider criminal history before deciding to just deny the application because of the eviction ?

Use that to confirm or deny what the wholesaler said.