Any other debt can be escaped with bankruptcy.

There are two camps of advisors on this thread...I'm in the camp that the asset and the borrower experience are significantly more important than the borrower's credit score (excepting an extreme outlier / recent bankruptcy type stuff), W2, proof of employment history.

I recently started listening to the BP podcast and I’ve become extremely motivated to start diving into real estate investing.I’ve been sitting on the sidelines for about a year because I’m younger, 24 years old, fell on hard times (injury put me down for 7 months), I fell into a fog, trashed my credit, foolishly filed for Bankruptcy even though I wasn’t in a massive amount of debt (30k) and I ended up deeply regretting doing so.

I have seen properties cancelled after the sale because of a miscommunication or last minute bankruptcy filing.

@Brian BistolfoIn July 2017, we purchased a rental in the Waldo KC area through a bankruptcy auction which already had tenants. 

You can deny if: They cannot afford the rental, evictions for non-payment, recent bankruptcy, financially reckless behavior, etc.

If there really is no equity or It's close (5k-ish) and they file for bankruptcy, you can be stripped.

No bankruptcy or defaults on loans.

No bankruptcy or defaults on loans. 

Many great tenants would not even consider signing a 2-year lease, so you may be missing out of some of the market.From our rental criteria:FINANCIAL/CREDIT HISTORY1.No outstanding debt to previous rental property owners.2.No outstanding debt to utility companies.3.No outstanding debt in excess of $1000 that is not in a payment plan.4.No excessive monthly financial obligations - more than 20% of income.5.Lack of credit history or marginal credit history may result in additional security deposit. 6.Derogatory credit (past due accounts, collections, charge off accounts, tax liens, judgements in excess of $1000 and/or bankruptcy) may result in additional security deposit or denial.