@Roberto Rodas, I would argue your biggest expenses are going to stem from capex items and tenant damage.  

In most cases these are not issues that can be easily resolved and typically the damage can merely be mitigated.

Insurance typically is not paying for what they consider "intentional damage" and suing a tenant for damages doesn't work if they have little to no money to begin with.

Purchase price: $98,000 Cash invested: $30,000 Sale price: $158,000 Fire Damaged Home

Unfortunately our new payment provider does not allow for holds, so we offer damage waivers. 

Purchase price: $98,000 Cash invested: $30,000 Sale price: $158,000 Fire Damaged Home What made you interested in investing in this type of deal?

In such an event, the tenants will be responsible for paying a lease termination fee equal to 3 months’ rent ($7800), as liquidated damages for the Landlord's inconvenience and costs associated with finding a replacement tenant.

It appears the property is in bad shape, what can you tell me about the condition and is the tenant causing more and more damage?

Along the way discovered some of the walls were rotted out due to previous termite damage.

You said it isn't obvious that it's coming from the roof, but if rainwater is coming in from one damaged area it can easily be pooling and then traveling to that area of the house.