Kicker is I don't have to sell, I would simply be happy with not renting anymore and continuing to build equity.2-Correct purchase and renovate a 3-5 unit building.

To communicate that a candidate doesn’t meet your qualifications without violating fair housing rules, you can simply focus on the criteria rather than the individual.

In my mind if you need to borrow money for these kinds of services your simply under capitalized and taking on long term financial risk. 

Should it simply be one of two choices: deny application or accept application with ESA exemption even if the property qualifies for the FHA exemption?

Based on the excessive amount of hours spent and the lack of prior authorization as agreed upon and taking into account our prior communications regarding minimum acceptable owner distributions, I must insist at least the labor portion of the repairs be refunded.

I am simply an "active" passive investor.BTW, I am reading Joe Fairless' BEST EVER book and enjoying it.  

Their income is only 3X rent, they lack credit history, and the household is much larger, which could result in more wear and tear.

They simply skip over/ignore concepts like vulnerable persons, equity skimming, equity stripping, bank fraud, wire fraud, mortgage fraud, escrow and closing, etc  It's now the "thing" to do.What could go wrong?

Simply safety screening criteria.

I'm all about finding problems to solutions and figuring out how to make something work rather than simply conceding that it cannot work.