how sustainable is this model?

Personally, I am avoiding those markets for now just for a sustainability and environmental outlook, but I would overestimate for insurance premiums, almost 2x what you think just so you have a buffer.

Any tips for finding that sweet spot between profitability and sustainability?

Same here, when starting out, figuring out how to build something sustainable.

Final ThoughtsWhile you have the right to deny applicants based on relevant court records, always do so in a consistent and fair manner.

Glad to hear you are OK and didn't sustain too much damage. 

The amount of rooms available is barely sustaining the amount of traffic coming so from an investment standpoint, it is a very opportune time. 

Obviously, that would not be sustainable.

Not good enough to build a sustainable and successful business! 

@Sara Kumar most states require a tenant to return the property in the same condition as it was when they got it.As such, a tenant can usually repair damages they caused - as long as they pull all proper permits, work is done in a professional-like manner and they indemnify the property owner & manager from any and all potential claims.