AI developments are being referred to as more significant than the Industrial Revolution by very intelligent and established tech leaders.This IS going to change things drastically and probably much quicker than most realize.The question I have is this:AI will likely be the most extreme deflationary effect ever experienced by mankind.

It will have even less effect on your networth or your net income,but it is almost risk free. 

You can only sue for actual damages.

And it sounds like you're able to get amazing interest rate on that refinance effectively moving the debt to a 2.75% interest. 

I saw a lot of potential even though there was much deferred maintenance, poor mgt. and significant water damage in one unit requiring complete rehab.

All that being said, if things go bad be prepared to damage your relationship.

What about S8 tenants abusing utilities and causing damages?

Is the Property & Liability (Package or BOP) coverage being cancelled or just the Flood2. what were the dates, type of damage, and amounts paid on the claims3. what has been done to mitigate the chance of this happening again4.

Landlords are required to disclose that the property is located in flood prone area and/or the property is known to have been damaged at least once during the 5-year period before the lease.

If this were the case, then your model wouldn't be effective anyway.