This not an uncommon practice but is relatively untested as far as the application of the IRS deminimis rules to 1031.By the say, I tried to accept your colleague request and somehow hit deny and now BP keeps saying we're pending. 

Then include instructions on how they can send a letter to request more information.I manage hundreds of rentals and none of my denials have come back asking for more information on why they were denied.

Just approve or deny them based on your normal process. 

Some what related to the orginal question... what are some things that would result in a applicant getting denied?

You can try and raise rent and they can approve or deny it.

When he supposedly presented the off he immidiately said the seller denied the offer plain and simple no negotiation even though my offer was in ballpark of the asking price. 

It is the most abused issue among renters, and it makes me so mad at people who are not legit. 

Check out the REAL ESTATE SOURCE, Inc  flat fee brokerage, and Tony Deni ( the broker) is available by phone 7 days.

If the tenant went to the bank with the money, was denied the deposit and then immediately contacted you and you sorted out getting the rent, then I'd probably waive the late fee. 

Last year he was on the news - missing and wanted for sexually abusing children!