Airbnb offers $3M damage protection insurance (AirCover) if guests don't pay for the damages they cause, and $1M liability insurance if a guest gets hurt or their belongings are stolen.That being said, I too do not allow instant booking or most last-minute long-term bookings out of nowhere.

@Jeff SkinnerRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

It’s really damaging to tenants. 

That led to uncovering significant water damage throughout the first-floor unit's bathroom, forcing an immediate renovation.

Their behavior will not get better, the longer they stay the more damage they will do to your place and erode your rapport with your neighbors.

I've collected thousands in security deposit from my guests who've caused damage.

I’d recommend starting with business credit cards that only require a soft inquiry, so you don’t risk a denial from one bank that could influence the others.

@Adam OrtizRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

There has been a lot of emotional damage to both sides. 

Houses that sustained fire events have long term consequences including structural damage and mold that results from water intrusion required to extinguish the fire.