However, the area I live in is expensive enough where I have not found a single multifamily that is even close to meeting the 1% test.

Where I invest there is also an attorney approval contingency, so sometimes as long as I can get into the property the next day I can make a sight unseen offer even with no engineers inspection contingency, get it accepted and then do my walk through the next day. 

If the rent survey goes well, then you will want to run some test ads to see how much demand there is for homes. 

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.

BP,I have a short sale accepted by the owner at $56k. 

They denied it and accepted three other offers before finally accepting mine.

Would it have made more sense for you to test the Airbnb unit yourself, rather than rent it to someone who's doing that?

I frankly just don't know what is considered acceptable or looked down upon in this type of situation. 

Water tests done on the wells were positive.

If I were the seller's agent, I'd be looking for a large non-refundable deposit.What the seller's agent is trying to prevent is accepting an offer from what turns out to be an unqualified buyer.