They claim it is a triplex (two regular units and an "efficiency unit".

If the rents and upkeep are really as unreasonable as you claim there should be other cheaper and better solutions nearby. 

You only want to file a claim if it's much greater than deductible or your rates shoot up pretty quickly. 

Investigate what (if any) additional fees that they charge for handling evictions, and find out whether they go to small-claims themselves, or hire an attorney.

If these type of damages occur in the future, I would recommend holding the tenants deposit, or if there is a claim to be made through the insurance you sell them you could approach that avenue.

A magistrate is the lowest level judge who deals with landlord/tenant and small claims cases but they don't even need to be a lawyer to get that position. 

It was one of my first claims and I learned how their claim system works and never failed again. 

We are now suing them in TX small claims court as the security deposit was not enough to cover the 2 - 3 months rent after they trashed the house. 

While you don't exactly validate his claim..sounds like for many it might be moving that way.Is there any city that could make it a competitive advantage? 

Do I go about doing this by performing a Quit Claim Deed?