In judicial states in which the foreclosure process often takes a year or more, this not only generates income, this also typically mitigates property deterioration, vandalism, and other costly issues which diminish the value of abandoned properties which remain vacant for extended periods.

If you had a mold remediation company do all the work and mitigation, send the threatening party the reports and clearance.

The only real difference is you'll need to purchase flood insurance on the property during the project and all good lenders will make you do this to insure your risk is mitigated.  

Various legal setups can  mitigate a large part of this risk.  

I have done small things like switch from glass wine cups to acryliic ones that look like glass and take a damage deposit of $250 that helps mitigate small things breaking that are over $50.

A solid property manager could have mitigated these losses most likely.

FL can't do a dang thing to stop a hurricane, but they at least try to put in place mitigation items to lesson impact. 

@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

We already signed the purchase agreement several months ago...it has been on hold while they mitigated a pest control issue that has taken 2 months.If it's that important, make it part of your purchase agreement.

When I asked the seller for receipts detailing the work done and requested permission to speak with the mitigation company directly, he refused.