It seemed that this method is not promoted by and large on Bigger Pockets, due to some investors giving this method a bad rap due to misuse.

Has anyone successfully made a deal with a tenant like this and were there any liability issues, misuse of the equipment, or unfulfilled obligations that made it a sour deal?

On any issue, try to have a third-party document the cause - IE the certified appliance repair tech states that the burner is out due to misuse, you then charge the tenant for the repair.

Should have noted:Cities do not have an NOI and thus can never have a CapRate.Also Cities do not have a Purchase Price and thus no CapRateWhile figures don't lie but misuse of figures is LIKE lying, even if it's unintentional.

If it breaks due to their misuse from one of those items, you could charge them for that. 

If no added value is needed, you'll have to find some other way to "force equity", if I can somewhat misuse a term here.

It may be misused by an employee but you are not suppose to be advertising at the Daily Newbie question report I receive 5 days a week.  

The word mortgage broker is misused a lot and there are some really uninformed answers in regards to mortgage brokers.

And you've had complaints from others and are concerned,, and the activity needs to stop, SO send her an excessive traffic warning that you have notified the police safe officer for your property of the situation because you are concerned that the property if being misused in her absence.the other suggestions above are good. also..

Not to mention damage (water damage from the misuse of a dishwasher) I discovered in my property might have been easily covered under such a policy versus me having to go after damages from the former tenants.