Just another perspective, I work for a developer that does their rehabs with integrity, and specifically with the goal of holding onto properties long term and minimizing maintenance costs.

What is the integrity of the houses' systems and when will they need to be replaced (capital expenditures)?

In studying past auctions I can't seem to find any one particular factor that correlates highly with 3rd party winners (vs. bank taking it back).

@Edwin GachingaYes 7 of the 8 are positive cashflow according to my rental calculator which factors in capX, vacancies, property management, repairs.

Is there some places I should spend more of my time searching in vs. others because of this fact?  Or

. :)Property management companies might charge more if there is more maintenance, and you might need a super if the tenants are not used to cleaning up after themselvesIf you total all these up the 2% rule-of-thumb may not be the returns you're looking for, especially when you factor in the tenant headache you are dealing with.Last point: often if you buy a property for $30K you will likely be selling it for $30K in 10 years, so don't expect to necessarily get rich off the appreciation.With all that said don't let this stop you looking for property, because you MUST start somewhere - we all did. 

Max dti for automated approval through GUS is 47% housing ratio and a 57% back end ratio (and this is pretty much everyone, lenders don't manually underwrite unless there is an automated approval issue) - even then 31% and 43% are just placeholders, HUD allows 37% and 47% by meeting residual income requirements and no further compensating factors on R/E loans, and you can exceed 37% and 47% (most lenders will cap back end at 50%, but you can go to 57%) with strong compensating factors, such as assets.  

Well, all the costs to run a property is something you factor in before you even make an offer on the property.

Some criteria you should have a clear cut answer or might be as follows.Income to Rent Ratio - (Monthly Gross Income = 3xMonthly Rent)Credit Score - (600 or 650 or something like this)Credit History - no late payments within X number of monthsOther Debt - factor other debt into the above Income/Rent RatioReferences - how many and from who, and then contact them.To answer your question directly, I probably would not rent to this person.

There may be other factors that come into play, but that's the high level view.