The security deposit would also be transferred to the new owner (although you are bound by the original lease to return it after damages are paid when they move out) and a lease supersedes a sale so the current lease stays in place, you don't need to sign a new one. 

Can I use some of the tenant's damage deposit to pay what my insurance does not pay? 

A good operator will have insurance that protects themselves and you as the landlord from damages and liability.Is your property in the OC?

I’ve been with the same insurance company for 5 years and never had a claim and likely won’t make a claim unless I sustain a large amount of damage somewhere.

I disputed the charges with my CC company, and she's tried to block that(I thought BoA would give my money back easy).

I'm getting too old to wait, so if I have to take things in my own hands, I will.Here is the caveat, I came back to do this because I am extremely passionate about sustainable development, net-zero carbon, thermal mass, compressed earth block, rammed earth, hempcrete and others with all the add-ons like rainwater collection, solar and permaculture.

The vast amount of damage is normal wear and tear.

In general, when the landlord's property causes damage to tenant's property, the landlord is liable, unless there is proof that the cause of the water leak was the tenant (unlikely I presume).

After some back and forth, they agree to consider my offer of $40K and I bought another one at that price.So all in all I did OK, the cash flow was good, and when the market top came in 2003-2006, I manage to unload it for close to $100K.The thing is, this is a brand new condo, but walk a block away, you got section 8 housing.

@Malick NgomGet an attorney to send a certified letter requiring signature and include the satisfactionIn most states a lender can be held liable for damages for not recording the satisfaction