Make sure your insurance policy is okay with short term rentals, you don't want to have a claim denied if something happens. 

If you just have homeowner insurance and you have a multi family, they would gladly deny your claim for not having the proper coverage.

If you have an applicant you denied and they are persistent, how big of a deposit would you ask for if they are weak financially and one of the 2 has bad credit?

That said, it also depends on the extent of damage, totaled, then you have an issue.There seems to be an issue too with the city manipulating this setting him out for the time, which is an issue, contributing to the situation.We have had similar issues here, damaged homes in a flood plain, repairs can't be denied.

Once you're denied at the city level, you appeal at the state level and go up against the city assessor in front of a judge.I used the same forms that an appraiser uses and made adjustments the same way.

A Bankruptcy can be dismissed, which means the BK plan was not followed, so essentially the BK applicant was denied BK for lack of following the BK pay plan.

The judge decided there was no Stay in effect, and denied the motion.  

Now that the appraisal has come back noting 'no toilets' underwriting is denying the loan.

DENIED

After more research it appears that rolling other 401k's into a Solo 401K with a provider that allows loans from the 401K account is the best way to have access to your funds, while not cashing out the funds, and not be denied access to the funds by being a disqualified person.