Seller is not aware of any structural defect or adverse geological or environmental conditions affecting the property and its value.7.

I'm not a meth expert, so I don't know if the chemicals used are technically considered "environment contaminants," but that might require a "yes" answer.Most disclosures will ask something along the lines of, "Do you know of any other adverse conditions of the property that haven't been addressed in the rest of this document?"

If so, what do you use as your rejection reason on their adverse action letter?

On the downside, they haven't been operators through a complete market cycle, so you might question their ability to handle adversity through a down market.

So if you want any real opportunity you're going to have to push away from those areas and go into more risk adverse sections on JC, which still long term should do quite well.  

They don't understand the way I think and are extremely risk adverse.

Sadly, you could try adverse possession but that'll take 20yrs in MA lol, sorry if this doesn't help.

If you do deny them, be sure to send an Adverse Action Notice to remain compliant with the FCRA.

while smoking may not be a concern to some, you’re limiting your potential client base as non smokers, those with allergies, parents and those recovering are adverse to renting when units have smoke.  

My recommendation is that you screen tenants using a service which offers the full spectrum of reporting (job history, rental history, income verification, credit score, any adverse items as a part of their full credit history, nationwide criminal background check, terrorist list check, sex offender list check and eviction history).