Family member assured me things were good on their end, but I am a little more risk adverse, and want to be sure things work out well for them in the long run because they've helped us in this venture and deserve to be rewarded for that.I grew up here also, and agree Rosewood is a great part of town that still has some good opportunities (unlike Shandon). 

The propose is for risk adverse investors to sleep better at night.

Simply put, if your decision to not rent is based on their credit, you need to provide an adverse action letter.

If you are risk adverse real estate, (especially out of state) is not for you.

I own a property that has an rent to own tenant upstairs who has no money and does not perform required maintenance, which has adversely affected my property.

If there were an issue the lender or title company (both of which should be more risk adverse than you) would put on the breaks 

If you are risk adverse real estate, (especially out of state) is not for you.

@Jason Dillard, For my market (Peninsula, Bay Area), I would say that it was easy between 2010 and 2015. 2016 to present has been much harder (or perhaps I am more risk adverse due to what I see as downsides in the market).

However, the actual filing and decision whether or not you should file, should remain in your discretion.Too many claims, especially frivolous small claims, can have an adverse impact on your premiums and insurability. 

If you are risk adverse real estate, (especially out of state) is not for you.