It the tenant causes a fire and damages my house and neighboring houses then their renter's insurance will conver all the costs.My HOA has insurance.

@Sakib KhanRecommend 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?

When looking into it, the basement had water damage that didn't worry us since we knew how to remodel that area ourselves.

I have lost a lot more $$$ to tenant damage than to unpaid rent.  

Needs all new cabintry, windows, doors, roof (has some life left), fixtures, fencing, some electrical and plumbing changes, and some framing/drywall due to termite damaged sill plate in areas.

Quote from @Khaled El Dorry: I have a portfolio of 3 SFH's (2 in Jax and 1 in ocala) and 1 duplex in port charlotte (never flooded or damaged due to hurricanes) that have done very well for me.  

There are also a lot of attorneys in FL working pro bono to go after lenders as I believe there is something in the statute that not only can they recoup fees but they can also get consequential damages.

Selfishly, being able to respond fast, mitigates damage to the property (frozen pipes, mold!)

I have video and pictures of all the damages and had sent him the itemized list on 5th day of his move out, which is within 30 days.

My lease requires renter's insurance which should cover loss of use if the unit becomes damaged/uninhabitable, but I don't think renters insurance covers costs of living expenses incurred during just an evacuation.