I saw a home last month where the termites ate a wood truss so bad, the weight of the home compressed that 2x8 truss to a 2x6. 2 inches of movement is a lot.

With all of that said, if the paystubs alone do not meet your minimum threshold I would more heavily weight their credit. 

I love Colorado because we have landlord friendly laws, a nice blend of cash flow and appreciation, and it’s a growth market with rapidly increasing rent (over the past number of years anyway, less so this year).

I am new to investing in the Grand Rapids area as well.

You wouldn't want to buy into an area that is declining rapidly and where the tenant profile is decreasing along with the area. 

-HOA fees $118 but include in home high speed internet, And clubhouse access with 4 pools and indoor spa, full huge weight/workout room, basketball court, tennis courts etc.

Put those two together and it carries real weight and helps avoid court. 

However, as long as we keep cash flowing we should be safe, as it seems very unlikely cap rates will go flying upward rapidly. 

In fact, most houses in this area would appreciate much more rapidly than that.  

Vacancy kills landlords, and good long-term tenants are worth their weight in gold.