If I were you, id high ball everything , sounds like major damage to this house     maybe shoot for 60k rehab, high points on the hard money..... even if you buy cash at 30k +60k + hard money fees + closing costs ... you might be able to squeeze a 10 percent return out ..... if you have good contacts id say maybe It could work ... if you have only done this a couple times , maybe pass on this for something with a quicker turnaround time 

There is a a leaky faucet in third floor bathroom which has created damage to second floor's bathroom ceiling in addition to some other possible pipe/water issue as it was mentioned that after taking a shower water was found directly outside of the bathroom on the floor of the third floor apartment .  

I'm just curious, if the basement were to flood due to negligence who would be responsible for the damages? 

My main lease prohibits washer/dryers in the units unless we give written permission (which would be the addendum).Here's what mine looks like:THIS ADDENDUM IS HEREBY MADE A PART OF THAT CERTAIN LEASE AGREEMENT EXECUTED ON _______________ BETWEEN _______________________ (“Tenant”) AND ______________________ (“Landlord”) Rental Unit Address:This agreement serves as consent from the Landlord to permit Tenant(s) to attach and use a clothes washer and/or dryer within the aforementioned rental unit under the following conditions:Any damage to the Premises caused by water originating from the washer and/or its connecting hoses will repaired by the Landlord at the undersigned Tenant(s) expense.Tenant agrees to regularly maintain and clean lint/debris from the dryer unit itself as well as attached ducting.

Most states award treble damages for unlawfully keeping a security deposit if you choose to go that route.

Moved out at the end of their lease and left about 2 months worth of rent in damage.

Medical debt, divorce and bankruptcy are all things that can damage credit but they may still be good tenants.

Last night I got a call from a tenant who saw his neighbor's child stomping all over the hood of his truck and has done quite a bit of damage. 

Why would you invest for 2% to 4% with risks of damages, nonpayment of rent, etc. when you can do the same with zero risk CD's?

General Liability covers damages caused by the contractor, either to a property, piece of of equipment or to a person caused by negligence.