The problem with short sales is often after the previous owner or tenant moves out there is damage that you couldn't see very easily.

I need to replace all counters, both tubs need to be re-done, carpet in one room and some wall damage that needs to be fixed.

Well , as far as insurance , any plowing contractor should have insurance but most will make  you sign a hold harmless agreement , basicly we are not responsible for slip and falls , bushes , driveway damage etc .

Here is what it says:"Upon any failure of Resident to occupy the Premises for the full term of a fixed term tenancy, for any reason other than as provided in ORS 90.453(2), 90.472 or 90.475, Owner/Agent may charge Resident either:---A)all of the following: i) all rent, unpaid fees and other non-rent charges accrued prior to the date that Owner/Agent knew or reasonably should have known of the abandonment or relinquishment of the Premises; ii) all damages relating to the condition of the Premises; iii) an early termination fee in an amount not to exceed one and one-half month's stated rent and which is due on the earlier of the date Resident gives notice to vacate or the date the Premises is vacated; iv) interest on the above amounts at the statutory rate from the date each was due, and v) all other amounts due at the times specified in this Rental Agreement; or prospective buyers or B) all actual damages resulting from the early termination, including but not limited to: i) repayment of concessions; all rent through the earlier date the Premises is re-rented and the lease termination date; ii) advertising and administrative costs to re-rent the Premises; iii) concessions given to re-rent the Premises; iv) the difference in rent if a lower rental rate is received from a replacement resident during the remaining term of the original Rental Agreement; v) damages related to the condition of the Premises, and iv) interest on all amounts at the statutory rate.

Hey Ali,Sloped floors are typically from either the foundation settling or beams/joists damage.

In class D areas the numbers may look like a 15-20% return but the reality is those numbers rarely come to fruition because of evictions, and damage to the property. 

The security deposit is there to cover damages you find after the tenant moves out.  

Got them out with minimal damage done! 

I have to come up with some sort of damage control.    

I'd send them the security deposit statement with move out damages and unpaid rent amounts and then at least you've done your part.