Some sales contract's don't limit the seller to retaining the $5k EMD, they can also seek liquidated damages in addition.

You can often uncover major things with a little research before you view the property - Ages of appliances, HVAC system, foundation/cracks, plumbing leaks, small electrical things (bring an outlet tester), signs of previous leaks, termite damage etc.

On the roof is there hail damage where it can be insurance claim worthy?

Hi Brian, I have Obie in my properties now, although I've never filed a claim with them so far, they are the better rates I can find, ask for their tenant liability coverage, I paid an extra 107 dollars a year and they cover up to 100k if a tenant severely damage your property. 

If you want to minimize the relationship damage, you can perhaps sell.

of course the sale of hurricane damaged houses also confuses the issue (my house had no such damage but is only about 4 blocks from houses that did).

After having a bit of a tantrum to start the year, where the 10-yr treasury spiked to ~4.8%……bond vigilantes have been feeling better about inflation’s prospects these last few weeks (the breaks above are holidays).

I paid $165,000 for the 1600 sq foot home and I'm assuming I will have to put at least half that much into repairs as there is severe damage to floors and walls as well as black mold.

Save yourself the brain damage, clear it out, convert it back, discover a whole new class of tenant you can now get and enjoy the ride of eliminating 70% of the hassles this property delivers. 

Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?