Better safe than sorry, if non-payment can they make any arguments in terms of deposits already made?  

We feel confident that once we apply our own screening criteria, we could find decent section 8 tenants, however, I am questioning, as a safe guard, if it's legal to give a tenant a notice of terminating a lease if the tenant has caused enough damage or incurred enough fees to deplete their security deposit.For a prior experience example, our last Section 8 tenant (the "final straw" tenant) had a $650 security deposit and at one point, had the front door kicked in, breaking  the door, both locks, and breaking the surrounding plaster (not due to a home invasion).

There may be a lot of fraud (especially here in South Florida) but for a homeowner who has this vacant property that they don’t know what to do with, I would still think overall that completing a short sale (with acceptable terms from the bank) and having their credit reflect a settlement on their mortgage would be the more safe route.

Here's some safe advice, Stay Local and join your REIAs and Meetup groups.........much, much, less expensive training(compared to Gurus) with much better content.Sorry for the long post but needed to comment on my disastrous experience.

So it's safe to assume using the 50% rule that $1600 / 2 = $800, I would have $300/month in true cash flow for this property?

Most people go turn key because they feel safe. 

We literally just took over the property last month so I don't have too much info on this but I believe where we are, it's pretty safe neighborhood.

It would be best to talk to a lawyer if you want to be safe, but there are simple forms like this on Google that are just one or two pages

Coke is a safe stable investment pays a decent dividend - Netflix was a high flyer with amazing returns.

I went a little high on my rehab estimate costs just to be on the safe side.