I am guessing that they will suggest that you require the Tenant to have:- General Liability (1,000,000/occurance)- Umbrella Liability ($1mm or more)- Professional Liabiity ($1mm or more)- Tenants Legal Liability ($500,000 or $1mm)-  Abuse/Molestation covered under the Liability or as a separate limit)- Business Auto Liability ($1mm)- Workers Compensation & employers Liabiltiy- If they paid to make modifications to the property to be able to operate (ie. ramps, special doors, etc.) they may need Additions & Alterations coverage depending on what your lease says on who owns those.They will probably seek to add requirements that shift the burden of Insurance to the tennant for something that you both get drawn into.  

A lot of guys I work with put a lot of money into their deferred compensation plans.

Turns out the foundation was fine but the roof was leaking and the current owner wasnt willing to compensate for it.

@Allen LemayIt takes a huge amount of work looking for deals, analyzing them and making sure that the numbers make sense.And it is fair that whoever finds the deal and bring it to the table gets compensated.5 to 10% is not unreasonable.

As you mentioned, it's clear we've over compensated for tenant negligence which has emboldened the parents (who only get half the story from their college kids) to make unreasonable demands.Moving forward in this situation I'm going to maintain the offer of 3 month early out on the lease to avoid further headache, but draw a line stating we can go the legal route if they want more, in which case I'll claim the remainder of the rent in addition to an legal fees.

We discussed me paying off his second mortgage, compensating his realtor and taking over his 1st mortgage. 

I receive no compensation for referrals.

Seeking no compensation, only time and information.

Try to reach out for the owner who defaulted the loan, promise to compensate him and ask him to appeal the sale and over turn it.

If you have CoStar access for a city, state, or especially nationally, we'd love to talk and have you run a search and be compensated on the deal.