Ordinarily those tenant vacated damages would be too remote, but it sounds like they were contemplated by both parties at the time of contract.Were I in this situation I would be looking to state law to determine if the EMD is truly the extent of my potential liability as a buyer. 

To keep his reputation he paid those investors back the $100,000 plus 8% which he did not have to.  

Seems like you should not have to but showing they broke house rules leading to damage may help. 

But I could tell during the estimation and quote process that they intended to over deliver and maintain an apparently stellar reputation. 

I'm currently dealing with severe property damage on a single-family fifixer-upper in the Atlanta metro area, and my insurance adjuster hinted at hiring a public adjuster.I'm new to this and could use some guidance.

I hired a contractor with a solid reputation for working with international investors, and we agreed on a total cost of $495K, to be paid in stages.

Purchase price: $275,000 Cash invested: $45,000 Sale price: $410,000 Contributors: Adam Schooley This townhouse, which had gone through probate, suffered from significant water damage to the drywall and required updates throughout.

Get a damage restoration company involved.

Make sure you’re working with a team that has a good reputation and understands the market.3.

Purchase price: $275,000 Cash invested: $45,000 Sale price: $400,000 Contributors: Adam Schooley This townhouse, which had gone through probate, suffered from significant water damage to the drywall and required updates throughout.