There is such thing as normal wear and tear and if you hold her security deposit longer than 30 days after walk through, you'll meet her in court and the judge will support the tenant.Just collect her last water/sewer if by the lease it's on her, and move on.Market is hot now - you'll find next tenant before this one vacated the house.Good luck!

I assume your not looking to tear down a trap house in the middle of the ghetto and put up a nice town home in its place.

[No coverage for] Water below the surface of the ground including that which exerts pressure on or flows, seeps orleaks through sidewalks, driveways, foundations, walls, basement or other floors, or though doors,windows, or any other opening in such sidewalks, driveways, foundations, walls or floors;...Wear and tear; marring; deterioration; inherent vice; latent defect; mechanical breakdown; rust; mold;wet or dry rot; contamination; smog; smoke from agricultural smudging or industrial operations; settling,cracking, shrinking, bulging, or expansion of pavements, patios, foundations, walls, floors, roofs orceilings; birds, vermin, rodents, insects or domestic animals.

I bet smart developers will tear down buildings and build condos or FM Rentals like they do in NYC to hit their return requirements. 

A tear down and rebuild is difficult enough for a seasoned investor let alone someone new to it.My wife is in medical school so I can relate to the concerns.

How to destroy, bend, scratch, scrape, tear and collapse window screens efficently.

I’m sure it will help with wear and tear long term on the property. 

I would try to get permitting for 2-4 units if possible.2) New construction would run you about $165 sq/ft  in the area.Im looking at a new construction project for a 1300 sq ft sfh near 66th/westernif you need to tear down the existing structure may be more. 3) first steps is get architecture drawings, understand the utilities needed, then permitting.  

There's specific knowledge that can only come with ownership - buying and selling as a broker doesn't make up for the blood, sweat, tears, triumphs, and lessons learned of ownership specific to a jurisdiction. 

It sounds like you are looking for someone that has experience working with investors, maybe even is an investor themselves, that can help you find some properties that aren't a tear down, but also aren't priced just under retail cause all they need is some cosmetic fixes, right?