As a broad rule of thumb, the 50% Rule for SFRs states that about half of the rent will go to non-mortgage expenses.

We usually like to see the land purchased and the permits in hand before we fund the construction phase, but the amount spent on the land and other soft costs go towards the down payment.

Just want to make sure the market rents support the new purchase PITI payment.

It will decrease your cash flow as your single payment will be higher than the multiple payments combined. 

Nonetheless, it also carries certain risks such as nonpayment, restricted liquidity, and potential legal intricacies.

Most of the negative reviews of PMCs are from tenants that didn't like being told, "NO" or being evicted for nonpayment.

I use the following criteria: Applicants minimum requirements Policy:Applicant’s gross monthly income must equal approximately three times or more the monthly rent.Applicants must be employed and be able to furnish acceptable proof of the required income.Applicants must have a credit score at or above 600.Applicants must have good references concerning rental payment, housekeeping, and property maintenance from all previous Landlords.Applicants do not have a history containing evictions.Applicants do not have a history with felony convictions.

What you can do is request rental history & applications so you can review it yourself to find out as much information as possible in terms of their payment history. 

You can see whether payments are made, on what date, for how much, etc.

This feels naive. 2) Do I withhold payment until his insurance company will verify his statement about payout should he vanish?