Depends on their health and any desire they may have to simplify.

The insurance side of it is tricky too because you have to also lie on your insurance paperwork.

She’s currently not paying rent, and while she has some health issues and no stable income, she’s been communicative and open to general talks, with a possible option to vacate through a cash-for-keys arrangement, though this might take around six weeks and some hard work.I plan to rehab the property and eventually rent it out, potentially to a Section 8 tenant.

The damage waiver is almost like a little insurance policy for damages that exceed the deposit.

Totally random but I know you can normally get a nice discount on your hazard insurance if you're within a certain distance of a Fire Station @Ray Ebert

Conventional loans with 5% still require mortgage insurance. 

then, there are holding costs while you rehab - servicing the loan, insurance, utilities, the rehab. 

Did your borrowers mention securing your investment with a recorded mortgage or deed of trust, personal guarantees, lender’s title insurance, or anything else?

Would having a highly insured property (1,000,000+ liablity) plus not being a negligent or slum landlord be sufficient and not require the use of an LLC? 

Is the HOA sufficiently insured?