@Michael Daniel Ultimately, it's all about confirming what the housing authority pays.

Ignore the $1,250 per month because that's your cost of housing, if you didn't pay that on the home you'd have paid that in rent so that's a non factor. 

If you’re In a title state make proof of utility pay off a condition of closing.

In the end we had to pay to turn the space back in to a white box/shell and closed with basically zero physical assets.

Tenant covenants and agrees to pay interest at the maximum lawful rate or eighteen percent (18%) interest, whichever is less, compounded annually, on all unpaid Rent, damages, and other amounts owed by Tenant, excluding late fees, from that date of Landlord’s final accounting until such time Tenant pays all such outstanding amounts.

With that being said, I personally know several people who've had tenants that stop paying their rent and try to hang around for as long as possible. 

The 90% they are paying you back is probably 1/3 of what they're actually making by you committing to a deal.

I focus almost 100% on my pad ready land cost to come up with profitable deals. 20% of gross development value is the most I will pay for land.

So either you pay for the repair out of the idle cash in your account, file an insurance claim and use those funds, or rollover/transfer funds from another retirement account to cover the cost. 

The home burns and the incredibly over taxed CA FAIR plan has either gone bankrupt or takes years to pay out.2.