So I took his application and he said that he had never filed bankruptcy.

Definitely can't go that high but may either counter or just leave it alone and keep watch on it...they may get motivated as the weeks pass.

There are some risk management ideas you can discuss with the attorney that we see in commercial leases:- Requiring the Tenant to name you as an Additional Insured under their policy- Requiring 30 day notice of cancellation or revision of the policy- Requiring the Tenants coverage to be Primary and Non-Contibutiory- Including hold Harmless and Indemnification clauses- Requiring their company to waive Subrogation The Attorney can advise based on local laws other things that may be applicable

I do screen heavily, but fear that with less expensive properties it will be difficult to find "quality" applicants that can pass screening unless I greatly lower standards.  

While @Marcia Maynard gives solid advice, WA has a reputation for being super tenant-friendly; whereas my experience in NH is that our courts are less inclined to tell landlords what they can and can't do with their own property, so long as the proper procedures are followed precisely and the landlord adheres fully to all applicable statutes.If the tenants are in a lease term, they can not be evicted for cause not stemming from violation of lease provisions, nor should they be; as they entered into that lease in good faith that they would have a place to live at least until the expiration of the term.

Let her watch her home remotely on my iPhone via cameras or even go and visit on occasion, I say.

As you know, the Pittsburgh standard treatment that tenants get here is having a thick lease thrown at them by a property manager or landlord who looks at their watch and sighs in irritation if the tenant should have the temerity to want to actually read what they're signing.

You want to know who they are, how they take care of your property, how they screen applications, how they deal with lease violations and unpaid rent and evictions and maintenance.

Thus, you qualify and buy that property and live happily ever after.Minimum general paperwork for your lender to make the determination if the above will be applicable to you, this is true of your lender of choice if they choose for it to be true:Gotta run your credit, can't run the AUS without that.

I would start trying to include her in a lot of your REI research such as, reading Robert Kiyosaki's book Rich Dad Poor Dad, have her watch Biggerpockets podcasts on Youtube with you, start having her more involved in your finances.