The tax burden is often negligible since real estate is very tax favorable and comes with many applicable deductions. 

There is still some smell remaining, but almost negligible.

., there is 1 sheet rack that collapse in the basement so we are going to replace that, our lease stated that rented will shoulder any damage specially any negligence which I understand.

I provide them but they fix them if they break, especially due to negligence, and they need to keep them clean.

If the tenant is to be responsible it needs to be negligent behavior and ideally outlined in the lease.

.—(4) The landlord is not responsible to the tenant under this section for conditions created or caused by the negligent or wrongful act or omission of the tenant, a member of the tenant’s family, or other person on the premises with the tenant’s consent.

I was not planning on charging them the system repair, but I do need advice on the things I do want to charge for and proper procedures.The house is in fire country, and I paid close to $400.00 to get the weeds and brush cut back from this episode of negligence.

A commercial policy is going to cover the dwelling, lawsuits against you (unless it is gross negligence on your part),and lost revenue in case of peril.In 2017, a cabin I owned burned to the ground in the Gatlinburg fires. 

I think the $500 or so title insurance policy is a negligible and necessary transactional expense.

Even when you run the numbers in the scenario when you move out and rent both units out, you are most likely going to have pretty negligible cash flow (I'm assuming you are going t0 FHA and have a loan of 95% LTV).