He never filled out application or paid rent.

That's super niche stuff, probably not applicable to 85% of what crosses my desk.

Many applicants tend to embellish the upside of their investment, which turns off bankers.

Builders have taken notice of the drastic changes under way, I encourage everyone to start running some searches to find all the development applications in downtown Hamilton, you'll be surprised to find some massive condominium and apartment complexes in the works.

In person application as well? 

Even conventional lenders don't actually take applications until you have a contract to buy a property.  

@Elliott Wolf any lender will do a VOE - or verification of employment... you'd end up running into a whole new different area of pain if you were not honest on your loan application. 

This article isn't speaking to exactly what you're asking...it's focused on turnkeys being good for new investors...but some of the points in it may still be applicable if you're considered which way to go-https://www.biggerpockets.com/...Also not exactly answering your question but bringing up more points in comparing options- turnkey vs. doing it on your own-https://www.biggerpockets.com/...The returns may be lower, but they may not.

We currently have a realtor to do the grunt work of finding and screening tenant applications and then we self manage.

Case in point...Friends had a sub working under their GC who took his old grinder, removed the wheel, took off the protective shield, added a small circular saw blade then taped the switch to the on position.