i would consult with attorney and CPA for your specific scenario . the same thing may effect everyone differently pending their financial position 

This deal showcased our effective renovation strategy and commitment to delivering profitable outcomes.

The security deposit would also be transferred to the new owner (although you are bound by the original lease to return it after damages are paid when they move out) and a lease supersedes a sale so the current lease stays in place, you don't need to sign a new one. 

Can I use some of the tenant's damage deposit to pay what my insurance does not pay? 

A good operator will have insurance that protects themselves and you as the landlord from damages and liability.Is your property in the OC?

I’ve been with the same insurance company for 5 years and never had a claim and likely won’t make a claim unless I sustain a large amount of damage somewhere.

The vast amount of damage is normal wear and tear.

The initial entry only effects the balance sheet and keeps the equation assets = liabilities + equity in balance.

In general, when the landlord's property causes damage to tenant's property, the landlord is liable, unless there is proof that the cause of the water leak was the tenant (unlikely I presume).

New career had less flexibility and I wasn't able to effectively do both anymore.