You have many options here.1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default2)Have them cover the damages with sufficient evidence that they caused it3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.

Eddie I'm in a similar position as you with the same questions. 

@Polat Caglayan The majority of investors who become involved in the section 8 program do so because they purchase lousy real estate and leasing the units to section 8 tenants is the best option on the table.

Another option is to put an electronic deadbolt on the front door with a non-locking door knob.

This is true whether those clients were on the optional recordkeeping program or not.I don't have a lot of details and am not personally involved in this program in any way, but I have experience with SEPiraK separately and they are a quality operation.You can reach out to info at sepirak dot com to learn more. 

Otherwise it is a good option.  

@Tim Holt, Yes INDEED house hacking is the best option for most 1st time buyers.  

What you want to avoid is a lengthy contract with extension options.

Talk to house hackers because that would be a great way to start, but you are also advanced with money so you may find smarter options that act more like index funds (syndications).

(And I know a wrap probably isn't the first option many would choose, but I'm in Texas so its really my only option)