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.

I did 4 fundings in Janesville last year and my guy got through the first one on time and for profit we expected then he up and passed away from a Diabetic coma.. leaving me with 3 that I had to work out of .. two I sold right away for what I had in them one we made a small profit It happens.I do background checks  dont really care to much about credit but I dont want any criminals and then If they are married I want to meet the wife and take them to the nicest dinner in town.

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.

The system protects the criminals more than the law abiding business operators.I agree with others though, turn it over to a local competent collection service. 

Wait out the criminals and bedbugs. 

@Grant Jordan WardYour post (potentially) contemplates criminal trespass and felony theft. 

When it comes to criminal history, that is not a protected class... yet.

Financially this deal makes sense; however, I am concerned with the safety aspect… I must live there for a year since I am looking for an FHA loan.There are areas close by that i know can have criminal activity but I am uncertain about this specific area (1-2 mile radius).

Maybe a newer investor with similar loose underwriting, just looking to get in the game will buy them (it's an offensive term and I'm sorry for that but it's called "The Greater Fool" theory). 

You'll be renting to college students who (no offense) aren't always the most gentle tenants.