I like it so much I'm thinking I should reimburse the tenant for the cost.

I've tried to look up some information about this and I'm not sure that's how it works, do you know if I can get management to reimburse me for the deductible?

If you’re lucky your insurance company will go after them for you (as they caused the loss) and reimburse your deductible.

It seems far more likely that your PM company was slapped with a bill and helped themselves to a reimbursement from your bank account.

That said, I still had to have the down payment first, closed the deal, then executed the seller finance 2nd mortgage which essentially reimbursed me.  

Collect the "premiums", and when you have a cancellation, reimburse yourself.

Then, after closing the seller reimburses the buyer for the down payment out of the proceeds from the transaction.

You can call it a repair reimbursement at closing.Otherwise you will have to get the house a lot lower so you save $6,000 from your down payment and make the repairs out of pocket.  

We want to reimburse the tenant either way.  

Thanks for your response , I was thinking I could just pay the income tax (reimburse him) so I can continue to use the funds, as I increase my own capital and we both profit like you mentioned.Is there a certain type of IRA that will allow me to do this, or will I be paying income tax for EVERY withdrawal when I go to close on another property again and again ?