Security Deposits may not be enough:Security deposits are ideal for covering the cost of rental ready services such as minor repairs and cleaning but will most likely not be enough to cover major damage caused by negligence.

Both can result in a flexible and secure investment with minimal market risk.Tax Sale Defined further...A transfer of real property in exchange for money to satisfy charges imposed thereupon by the government that have remained unpaid after the legal period for their payment has expired.Tax sales are authorized by state statutes to collect taxes that are long overdue to the state government from negligent or unwilling individuals.RequirementsAny sale of real property for delinquent taxes must be conducted in compliance with legally imposed requirements, or it is not valid.

In tight markets the REO discount is often negligible. 

You are better off with a good insurance policy. 99% of lawsuits in this business are tort cases (negligence) and nothing can protect your ***(ets) in that type of case. 

If someone has a key and commits a crime against a new tenant guess who will be sued for negligence.

Even with an LLC if you work on the electrical system and do it improperly and someone gets electricuted, they can sue the corporation but they can also sue you for your negligence as well.

60% of property claims are caused by tenant negligence.

. $30 is really negligible, and not worth an eviction on your credit or potentially losing your deposit.If I was your landlord, I think I would have talked to you and enforced the lease... not threatened eviction from the get-go.

Are you trying to fire him OR do you wish to sue him for negligence etc?

Cashflow goes right back into repairs and vacancies...all of it- Appreciation and mortgage pay down are really the only way money is made landlording SFHs...and appreciation has been negligible the last five years.