Possible damage that didn't get fixed because the arbitrager wasn't able to make a go and they just walked away.There are all sorts of possibilities for problems.

Also, in the rental agreement, it says:"HOLD HARMLESS AND INDEMNITY: OWNER of rental property shall not be liable forany damages and/or injury to TENANT and/or their guest(s), or their personal propertydue to TENANT’S acts, actions or neglect.

They also said they see this problem ALL the time in Philly… when the city or a private individual knocks down a rowhome, they are responsible for treating the exposed partition wall of the next door property to protect it from the elements.

Whether they are section 8 or market rate, a bad tenant can cause $10's of thousands of dollars of damage really quickly.  

And depending on the state, gross negligence damages can include punitive damages for up to four times actual damages. 

I can only assume that our insurance company would not want to cover damages and such should something happen a house with tenants and a primary residence policy in place. but I haven't really gotten far into the weeds on the particulars of that. if you have gained any insight to that I would greatly appreciate the knowledge.

However, at some point you’ll come to know that when considering the time, aggravation, and damage to your reputation, it just wasn’t worth it.  

Upon closing on the deal, I plan to also conduct another visit to address the logistical elements of getting everything set up and finalized. 

Did you run into any unexpected challenges with the layout or structural elements?

Honestly, not what you want to hear, but take photos of the damage, send them an itemized invoice and tell them what they owe you.