It sounds like you were not engaged in your business and negligent in your responsibilities.

Also, maybe add something to the lease such as:"Any repairs due to tenant abuse or negligence which must be done immediately will be added to the next month's rent as 'additional rent.' 

The increased interest would be negligible- a point at most.

I told him that they almost burned my property down due to negligence and that I would NOT pay for a hotel.

That gets read into evidence, and the jury in the civil case looks at you and self-righteously decides to break you as a warning to all heedless, neglectful, negligent, arrogant young real estate investors.

Taxes are $225 a month or so. vacancy rate should be negligible, 5% or so?

Not saying he used an inexperienced broker, or a negligent one, or none at all, both he and his corp was sued for $3 million, but he had his S Corp covered for only $1 million but not for himself.

This will cover you shall any negligence occurs creating a loss for you.Installing cameras or having security is solely due to your discretion.

Ultimately they will likely pursue the water company who was extremely negligent.

I have the following clauses in my lease:Indemnification of Owner’s Agent: Resident(s) [agree/agrees] to indemnify Owner’s Agent for any liability arising before termination of this Agreement for personal injuries or property damage caused by the negligent, willful, or intentional conduct of Resident(s), [and/or] [his/her/their] guests or invitees.