I don't want the tenants to form any incorrect opinions.  

That is the IRS's decision but they generally do not stand in the way too much if they can not collect.  

You need to have some sort of criteria/expectations on the property before you make a decision. 

Some of my mistakes have taught me to ask "why" before I make a decision.

If you do, then the first one that gets their hold deposit in gets it.I think it helps do two things. 1) Creates a sense of urgency for them to make a decision.2) Helps prevent me from losing good tenants because I am able to act fast.I don't like the idea of collecting applications for a period of time.The risk there is that the good ones might be accepted somewhere else.

My mother had a health crisis and I became involved in making decisions on her investment as a result.

Andrea congrats on the decision to make the move. 

I'm not afraid of a challenge, just want to make an educated decision.

Every time you have a bad tenant move out, go back to the application and screening decisions and figure out what you could have done to screen them out.  

It sounds like you  are making some good decisions already, read and listen to all you can and reach out and talk to as many as you can in person too.