@Eitan RozenbergMy lenders are the practically the same rates on 30 year Fixed versus ARM... the differences are negligible.  

However, if there was negligence on behalf of your neighbor in maintaining that tree, then your carrier would still likely pay the claim and then look to subrogate against your neighbor’s insurance carrier.

So far we have text messages from the tenants showcasing negligence on the owner's part.

@John Riggs as the owner of the property, you could be held responsible for any slip and fall, especially if the plaintiffs lawyer can show negligence. 

Being aware of a risk and not taking action to prevent a problem can  be viewed as negligence.

Negligence is forgetting to change it for a month. 

Basically, the insurance will cover your liability and if you keep the property up there shouldn't be a reason for somebody to sue you for "negligence" or something similar.If you use a legal entity such as a LLC, just remember that it won't be eligible for conforming residential loans. 

If it is negligence and careless intentional behavior of guest causing a damage, we go after the guests.

A negligible amount.There could easily be other terms a seller prefers over making $1,000 more.

And if IRS challenges your claim to be a Real Estate Professional they will slap on a 20% negligence penalty. §6662(a) and (b)(2).