I do something that some view as illegal, so I would advise anyone to view their local laws, customs, etc. i am a huge fan of "rewarding" the tenant for fulfilling their monthly obligation.

If you look at this closely, we are using their raw land to start this and only the profits on the profits to fulfill this.2) We set-up a special 501(3)c that was grandfathered in to get the off-market Fannie and Freddie  REOs before any of you other investors have access.

We held the ex-girl friend responsible to fulfill the terms of the rental agreement. 

Defiantly do the routine screening of the students in addition to the full screening of co-signer including the full credit /background check.Based on the description of the tenant issues you had and the fact that they were students I would suggest that you did not fulfill your responsibilities as a landlord.

I would add that you should find an attorney for your team to review your contracts sooner than later in your investing career, and they may be able to further explain the ramifications of a tenant not fulfilling their end of the rental agreement.

Also, some people prefer to have a mailing address that is not at their home.About your expectation that your "pool of applicants is probably predisposed to having issues with lower income and paying rent late", you are creating a self-fulfilling prophecy.

They don't get it, unless they completely fulfill the terms of the agreement without problems.  

This way when a tenant does leave damage should always be minimal and easily covered by their deposit.If you are not doing regular inspections you are not fulfilling your responsibilities of insuring the property is safe and in good repair for your tenant.

By not fulfilling your responsibilities as a landlord to protect yourself you will end up reacting as opposed to proactively acting.

You've fulfilled your one year owner occupant commitment, and a job transfer is also a legit reason for moving within the first year.