Currently, we ask tenants to apply using an online resource and at that point they are asked to provide a credit report (its a soft pull, they elect to share it with me the landlord).

Of course do not be soft but show compassion.

Market was soft for 1-2 years, and then back on.

Sue Kelly, your advice is sound - I would  sell it, but the area has a very soft market and I don't see it going up in the near future. 

There is a huge risk, how about this one:http://www.daycare.com/california/state35.html$200 fine per day for the operation of an unlicensed daycare in the State of California.Do you think the tenant who will have done a runner is going to pay this - or the landlord (soft target) who knew about it and did nothing?

I'm still on his list, but in a phone call to said wholesaler he told me the market had got soft, and a former wholesaler in the area also told me the same and recommended I look other places for now and that was October last year.Anyway, as much as I despise rentals, if I knew how to make-a-living-NOW at it, I would get into it.

It is a serious business I guess I am just too soft to the stories.  

I worry about any "soft material" used in residential flooring such as rubber and cork.

Personally I believe it is because those landlords accepting pets are simply too soft hearted to say no.

@Matthew Ware Your sober and complete assessment doesn't sound like you're just starting out - you've got an excellent grasp on the hard and soft issues involved.