The homeowner's insurance should cover it, but if there was deferred maintenance that had been ignored I'd guess the owner could even be liable for criminal charges. 

No offense Brandon he just doesn't love real estate like the rest of us).

Worst case scenario is you are put on criminal trial for mortgage fraud.

Now I wouldn't say seller "stole" the rent either, as that implies a criminal action.

Criminals have the advantage over law-abiding people.

He has several Civil and Criminal records that concerned us. 

Delinquent tenants aware of that so by not cooperating, not letting official lead paint tester to enter, they can easily fail the landlord to have rental license and that delinquent behavior now will work in their favor:With no rental license they block the landlord effort of eviction when they are not paying rent and utilities or not leave when lease ends.Also the gas bills will be fallen on the landlord instead tenants should pay their use with landlords have LCP (landlord cooperation program) protection with PGW.Does anyone have solution for this and who is willing to join the effort to fight the city that actually encourages that criminal behavior?

Delinquent tenants aware of that so by not cooperating, not letting official lead paint tester to enter, they can easily fail the landlord to have rental license and that delinquent behavior now will work in their favor:With no rental license they block the landlord effort of eviction when they are not paying rent and utilities or not leave when lease ends.Also the gas bills will be fallen on the landlord instead tenants should pay their use with landlords have LCP (landlord cooperation program) protection with PGW.Does anyone have solution for this and who is willing to join the effort to fight the city that actually encourages that criminal behavior?

How would you go about cold calling a distressed property and negotiating a good offer that’s not offensive to the owner?

This is not something I knew about (baby not counting) and also was unaware that this type of language could be criminal...not my intention at all, so I will be careful what I say moving forward.