With C or below you probably can't avoid some of it so I'd go with a recency bias, ie anyone who has a long period of time between their last eviction and successful rentals other places will be a safer bet than the guy that just got evicted. 

I also love the idea of having maybe a 3rd party handyman or something like that to inspect the work periodically, that would be cheaper and that way they have no reason to lie. 

Yet, it seems common practice for wholesalers to use this contingency to back out of the contract simply because they have not found a buyer within the inspection period.

As mentioned if you're concerned, just keep a close eye on your credit profile during that period!

This venture was originally expected to have a 10 year horizon, with the goal to maximize IRR in that period. 

Cash out refinances have a longer seasoning period for most lenders as well! 

We had success in summerlin with insurance company paying .. over a 24 month period we had 3 tenants   fair market rent at the time was about 2200 or so non furnished.. we got 4100.00I did not like the turnover so I put it up as furnished rental and got 3500 and its going into its second year with a superb tenant. so seems like a happy medium for us.. 

That can be risky--- I have heard of landlords doing a "trial 3month lease" or "trial 6month lease" instead of a year, but then there stuff is in there--- not sure what they do then.

Current rate for a 10 year Refi / cash out is between 6.5 - 6.75%.....coming down to 6% or under can make a huge cash flow difference over 5-10 year period. 

You do have to live in it for a certain period of time as a stipulation.