If you have a potential tenant that "might not" be a good payer, just don't sign a lease. 

If they are low balls then usually you are asking someone to work for free as the fix and flip landscape is competitive for a low pay out.

I am not sure what the means for insurance payouts, replacement value and property value are VERY different - does anyone know?

It's probably best to have them pay out of pocket for a smaller cost like this.

Potential redevelopment or ADU play. 

There are never full photos of the mechanicals and basement and roof line so you will never have even a bare inkling of what the potential repairs will be.

Are there any key factors or metrics you look for when analyzing a neighborhood's potential?

Screen them as you normally would - does their income substantiate their portion of the rent +/- a little for changes in what the housing authority will pay out?

This designation doesn’t cost extra or give the manager access to insurance payouts but ensures you and the property manager are aligned during incidents, such as tenant lawsuits or insurance claims.

@Lauren Ruppert  Cash out refi only in the husbands name which will take the ex wife off the financing/title and use the cash out proceeds to pay out what is owned to the ex wife.