If the Ensuing damage is also not covered, the total loss could be vastly higher.  

I'm weighted towards RE but I have been buying in the public markets recently (stocks, index funds, bonds, REITs, Master Limited Partnerships, Business Development Companies).

Your perspectives have been incredibly helpful as I navigated how to handle the situation.Here’s how I just responded to the tenant:I expressed sympathy for their situation and the loss of their pets.

Quote from @Christian Pichardo: Quote from @Caleb Brown: Should you cut your losses and move on?

It ends in a $395M annual loss and entire brand tarnished by political spin.

One thing I can assure you, there isn't an asset class in the world that would have me comfortable at 100% leverage.Your money on the sidelines is great in principal but in reality it will be put to work covering the net loss on the properties you buy as you will be overleveraged and won't be able to cover your operating expenses with the rent.

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

Or buy a thermal camera to check for heat losses, they have gotten really cheap. 

I then recoup any losses in the resale and down payment forfeiture.

Equity growth is the priority with mitigating any cash flow loss or optimizing the property for superior cash flow.