If you hit you’re desired cap rate or ROI at 80% occupancy, anything a voice that is just icing on the cake.

That said, there is a clause in your HAP agreement that says if there is any criminal activity attached to the house you have the right to terminate the lease.  

We all joke that criminals are dumb...

Banks are required to report any transaction $10k+ for routine terrorist / criminal activity checks.Sounds like a pain, going in and paying like in 1952, but shouldn't matter.

Are you in charge of background checks- do you credit and criminal, other states> do you verify, etc.What happens in a hurricane when they can't go in the house for 2 weeks?

I would not consider a co-signer/guarantor if the primary tenant's income was insufficient or if they had other unfavorable traits that I thought they would be a disaster tenant living in the unit (like a prior eviction, criminal record, etc.) -- co-signers cannot help those things.

In order to avoid any Fair Housing issues, this really should come down to what do your published screening requirements state about a bankruptcy (in addition to credit, income, criminal record, etc)?

Ultimately that decision is a personal one and I hope you do the decision justice by looking at it from both sides.Good luck.

You can choose credit only or credit plus criminal & rental history. 

Unless you're not doing a criminal background check.