@Yoni Kaszynski, with a co-signer what I focus on is whether they are "collectible".

Otherwise, weigh your options with estimated vacancy and remodeling time, but how you may be able to mitigate losses longer-term with the higher rents you'll presumably be able to collect with new tenants. 

If you collected an insurance claim you would only be able to collect your out of pocket (ie deductible).

Yes, unlikely, but there is a chance to collect. - They have a working relationship with the court personnel, which always helps. - They know the process cold, so shouldn't make a newbie errors. - They are arms-length. 

If they ghost you and leave the state at the end of the month how much are you really going to collect?

If you do take on new debt or collections during this time, the lender will see and it will require that it be accounted for in your DTI (unless this is a DSCR loan). 

And what if the one person you didn't check has a criminal background, has collections, and more?

In particular:(1) Should I hire a law firm or collection agency to facilitate the transaction?

My goal is to leverage my hospitality background to create unique and profitable real estate opportunities.I’m here to learn from the collective wisdom of the BP community and share my experiences as I navigate this new journey.With gratitude and excitement,

Am I the only one having the problem of rental collection.