more than I can adequately answer here.

I want to ensure adequate protection for them and myself if any issue arises during the work being performed, which will be be light maintenance, painting, cleaning, etc.

Owner does not insure Tenant, the members of Tenant’s household, Tenants guests, invitees, licensees, or any other Tenants or persons in or about the Premises, from any loss occurring in or about the Premises, whether from bodily injury or property damage of any kind whatsoever.Owner strongly recommends that Tenant maintain, at Tenants sole expense, a standard type of Renters insurance policy or its equivalent, which provides limits of liability adequate to protect Owner’s and other Tenants property, as well as Tenants personal property from loss by fire, burglary, water and other perils.

Obviously the situation is more grave if the bank calls the note earlier, and consequently less grave if they call it later down the line.It seems to me as long as you keep adequate reserves this worst-case scenario is not so daunting.  

Adequate reserves are very important and a thorough study of your market is essential.  

Not having the control to decide when to do the repairs is, however, not always convenient, so keeping adequate reserves in a Section 8 rental is imperative.

I don't think this is being adequately explained to investors by custodians before they purchase.

Perfect background check, more than adequate income, nice guy, said he hated drugs and was hoping the neighbors don't smoke or grow.  

.• Generally command average rental rates • Property finishes are fair to good and systems are adequate• Includes former Class A apartments that are 10+ years old• Complexes are well maintained• Properties will have decent cash flow and decent appreciation potential.Class C Properties: • Built within the last 21-30 years (varying degrees of deferred maintenance).• Typically occupied by blue collar workers and even some Section 8 tenants• Usually have below market rental rates• The projects have fewer amenities• Renters by necessity. • Properties will have decent cash flow but appreciation has to be created with physical improvements (remodeling, aka rehabbing or repositioning)."

What I am unsure of and haven't been able to find an adequate answer is: Can I depreciate any improvements if those improvements are done while I am living in it as a primary residence?