Some have hardwood underneath, but it seems costly to redo hardwoods only to have tenants damage them.Any advice on best options?

Prospecting leads from tax lien lists?

I have a prospective tenant who says they are building a home and would like to pay me 6 months rent up front.

Conventional loans will not allow loans to be closed on properties with bad chipped paint, roof damage, wood rot, pest infestation, moldy carpets, broken windows, torn up bathrooms, etc etc.

This can be the difference from being able to hold an inherited tenant to damages verses covering everything yourself.  

However after further consideration (as they are just a quick rule of thumb) I opted to go for a long term prospect.

Most prospective tenants are thinking that when they view the downstairs decor. 

In NJ, prospective renters are usually paying (on-market) 3.5 months upfront which makes for better tenants in most cases.

We have high demand in ours but some prospective tenants are looking now, but want to move in a couple of weeks.  

Admittedly, I haven't done much research on the real data of such events but I have seen the destruction these things are capable of and the potential damage to the property in a still rare but possible nightmare scenario for a landlord.