Some investors look for cash flow and some look for appreciation and there are investors who need to merge the two in order for the deal to be considered good.I think identifying what sort of investor you are looking to become should be answered first. 

Furthermore, California has a very anti-landlord and anti-real estate investor government that can cause you all sorts of other problems as well. 

Then sort down to 3 or 4 areas you want to try to make connections in. 

It needs to be replaced with a typical bedroom doorknob/lock so a locksmith would not be needed in the future. 

Do you know how much the typical bills have been in the past?

Assuming you want to aim for syndication, you sort of need to learn how to develop a pro forma that ties the return to an IRR/XIRR. 

Also, there’s much to delve into on of those scenarios, like what type of cashflow or investment do you want, etc. residential, multi-res, small multi-res, commercial, industrial, etc.There seems to be fewer deals around these days and this typically benefits the more experienced and skilled investors but there are always multiple investors that get “tripped-up” in these markets due to them relying on recent “fortunate” market circumstances only to realize the markets cycle and they weren’t prepared or didn’t underwrite properly to account for unforeseen potential.There are more considerations, but this is a start.

All fair questions and yes, there are far too many variables to say with any sort of certainty.

This is my first investment of this sort and it has not worked out how I originally intended but I am learning from my mistakes and will be making better decisions in the near future What made you interested in investing in this type of deal?

You have many options here.1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default2)Have them cover the damages with sufficient evidence that they caused it3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.