However, you may have a hard time finding a seller who will take second lien because they potentially end up with nothing (not even a property) if your financial situation goes belly up. 

If not, then I'd say it all comes down to your financial situation. 

There are tow reason to get into REI as I see it.1 - Financial. 

I would consult a local attorney about this to be sure you are complying with state laws.I am not a lawyer and do not offer legal advice.Just my personal opinion but,if the tenants property was damaged or destroyed through no fault of there own,it would be the landlord’s financial responsibility to make the tenant whole and their insurance should pay for the damages to the home and the tenants belongings.Again,check your local laws with an attorney.

Here are their financials for last 3 years, with specifics taken out to protect the innocent.71 lots, 45 TOH's. 

Working with This tenant and property manager seems to have a lot more financial risk than denying the applicant. 

My name Is Jeremy and I am taking my first steps into chasing my dream of being financially independent and building wealth though RE. 

But I would like to be financially free in ten years.

My real estate objectives were diversification from financial investments and cash flow.  

when I look at a property I determine the monthly cashflow I want then take into account all the expenses and make an offer that will acheive that monthly cash flow. its a financial decision dont let your emotions get in the way.