If you feel it's too risky, you can always offer to accept them with a double deposit or something that mitigates the risk.You can make life easier by setting some hard limits to what you will accept.

That will mitigate 75% of potential roommate issues.

Commercial MF has experienced a long bull run; so, very little has gone wrong or it was mitigated/saved by the market. 

If you do allow pets in your rentals, what are your policies and fees to mitigate "damage"?

To be an investor or an entrepreneur, one has to be able to manage and mitigate uncertainty.

If you are able to renovate and sell the property quickly, then you can mitigate the affects of higher interest rates on a hard money lender.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

If an insurer has an opportunity to mitigate, or deny, a loss if there are contractual issue s, be sure they’ll try!

Instead it is helpful to understand the risks and some mitigation strategies.

The rule book is here: https://www.fanniemae.com/content/guide/sel022316.pdf The tricky underwriting can come from commercial lenders and their risk mitigation people who have rules that seem arbitrary or artificial.