If they meet your basic requirements but you failed to rent to them because you were holding out for someone better, it will look like you were holding out for someone whiter, or without kids, or not Jewish, or whatever.If you have two applications processed at the same time, it's justifiable to choose the "best" applicant but you need to ensure you can prove your decision objectively.The best, most professional policy is to have qualification standards and accept the first applicant that meets those standards.

Is this a risk that is taken depending on the investor's tolerance or is this just never a wise decision?  

She has been there for many years, her lease expired three years ago, and up until recently she has been tolerable. 

Whether it's right for you and it fits your goals/risk tolerance is for you alone to decide.

Connect with me here on BiggerPockets and I'll gladly make a warm introduction.For the record, I receive ZERO compensation for making this referral!

My questions how much rent coverage should my policy have?

@Macall Smith 70/30 will be set by policy so no matter how good you are at sales, you are just banging your head against a wall.Most Realtors just focus on owner occupants. 

From the info I've gathered, landlords can no longer have "blanket" policies on criminal history - no more saying any positive result is an automatic fail.

And we have the rental insurance and the umbrella policy on us.( P.S.

I learned about title companies minimizing their risk by not providing a policy due to a variety of factors that make them feel uncomfortable.