If you're honest with yourself you'll probably arrive and a *really* high interest rate that it would take to mitigate your risk. 

I know this was posted some time ago   I am a short sale negotiator  and  former loss mitigation employee having worked in a short sale department.

There is no statutory holding period and an unsolicited offer to purchase can be a very strong mitigating factor to a short hold in a 1031.

If their portfolio skews too heavy in one direction it can mean just backing away from that "sector" as a way to mitigate risk in their portfolio. 

Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

So I would not be too concerned about a bad tenant wasting their money to fill out an application.If anything, to help mitigate this, be upfront with your requirements for tenancy (600+ credit score, etc.) - then it's really not on you if they turn out to not meet the criteria.Hope this helps . . .

In fact, in virtually all states, you are responsible for diligently trying to re-rent the unit to mitigate damages all the way around - for you and for the tenant.

By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

Learn to analyze risk, plan to mitigate that risk, and keep moving forward.  

You assume a known, fixed financial loss (the cost of the premium) to mitigate your risk from an unknown and potentially catastrophic financial loss.