What to do if the tenant deduct the repair cost ($80.00) he paid from the monthly rent check?

While no-one typically checks on this (until renewal time), you would technically be in violation of your financing covenants.Another thing, your real estate agent may not have mentioned is that you are only eligible for one CMHC (or private) high-ration insured financing at a time.  

If it was done early, we just deduct out of the deposit any charges to the end of the lease (assuming it's the end of the lease).

@Anthony Porembski The biggest deposit deduction we find is when tenants leave big items behind when they move out.

I've been over the issue of capitalizing vs expensing over the years, and at one point, it didn't matter which gives me more deductions because we had large W2 incomes, and deductions capped.

According to the hard money lenders I need a licensed contractor in order to be eligible for a loan.

It could BENEFIT you if you currently CAN'T use your rental losses and you're deducting items like a home office or part of cell phone ect, you can shift those to a non-passive business where they can generate a usable loss potentially. 

.:)https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf 

There seems to be some good deals in this area and is an eligible area for Section 8 housing as well.

And still get deductions because of no 401k?