After spending 16,000 he's paying 2850.

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. 

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

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.

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

Show Financial Stability- Proof of Income: Military pay provides a stable and reliable income source that banks value.- Creditworthiness: German banks assess your financial standing, so keeping accounts in good standing is critical.4.

Example: If a business buys an oven and it costs $5,000, and $1,000 for installation and setup, and $200 of delivery and transport fee. 

@Simon Packman Not sure where you’re located but I have Vermont Mutual in Northern New England for most of my properties and the most I’m paying for any of them is around $4400.

And particularly one that pays but a fraction of their real job. 

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.