I assume you are mostly looking for leaks and water damage?

They offer a $10K repair fund to fix damages in addition to SD plus warranty for appliance repair etc.I have no say in whom they choose to move in, whether there are animals, limit on # of occupants etc. they reserve right to inspect property so i have no idea if they can tell me to remodel, paint etc.does this make sense i have a vacancy coming up in October (bad rental timing).

So if you discount a small amount to get rolling, that is something that can work, but don't want to stay low for long.You will start to get the dregs staying at your place and they can do some real damage to the place.

As a would be individual landlord with just a one unit single family property I don’t know I can stomach the risk or withstand a financial assault resulting from an eviction process for a non-paying tenant (or tenants that do extensive damage).I am seriously considering bowing out and selling.

@Amir PortalRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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?

There is extensive damage to the house and I am working with my insurance company and have talked to couple of fire restoration companies.

And I love the idea that any damages can typically be reimbursed from the guest or the insurance.That eliminates a ton of risk there compared to LTRs. 

With no structures, there's little to damage and it's not like a defaulting tenant can steal it. 

They provide fake checklists saying units are repaired according to agreed-upon inspection reports only to walk in to a home that is more damaged than it was during escrow.

It's laborious, messy - but it was far less damaging/challenging than the photos found on the internet...even with plastered walls.