This is our first time working with low income renters and my partners are unsure what kind of histories are ‘tolerable’ and which are deal breakers.

I know it's a personal decision based on risk tolerance, goals, etc., but interested to hear what others (other than the 25 or so people at the end of each chapter - which was awesome by the way) are doing.

See above...it is what fits in with your risk tolerance. 

P&I on 150K is likely to come in around $900 a month before taxes, insurance, and any accruals for repairs, capex, etc, leaving that pretty thin on a monthly cashflow basis (at least for my risk tolerance but everyone is different on that.)

In my opinion, looking at the whole picture (rental agreements, market rents vs. actual, vacancy, appreciation, etc) makes the investor outlook in OC a little more tolerable.

The backyard is an eye sore perception issue so you need to replace dry rot, paint, add drought tolerant or add a deck.If it takes also 60 some days I will be concerned with interest charges etc.

It all depends on what your tolerance is for the time vs money argument.  

So lastly, I would say, assess your risk tolerance.

I guess it depends on your risk tolerance.

Higher CAP generally means more risk, but more reward, so it depends on your risk tolerance.