So, at the end of the day we have zero idea as to was truly caused this... - Troy 

While I don't have any horror stories, per se, I have heard of people having a tenant for a year then causing $20k in damages upon move out, while skipping town to not be found again (this was a CA buyer buying from a turnkey operator in AL).  

That would be a prohibited transaction and self-dealing and would cause you to incur massive penalties, blowing up your IRA.  

.), and it caused inefficiencies and communication breakdowns.

I guess for me the dividing line is does it damage the function or cause a safety hazard if I leave it on the tenant.  

I imagine it's higher than a typical single family rental considering it looks like the host usually ends up paying for any damage caused by tenants due to a variety of reasons (tenant refuses to pay, damage happened in a common area and it's not clear what tenant caused it, etc.).- Rental loss - PadSplit claims they collect 97% of rents, but I've spoken to a few hosts who have said that a much larger % of their tenants get kicked out owing $500 or more in back rent that is rarely ever collected - what's your experience been here?

The section 8 policy on treatment of tenants had an obvious effect as the hit to dignity caused them to move. 

That’s why I invested in rentals—to have a safety net.I'm not exactly sure where you're at, but if your current situation is causing frustration or stress, there’s no shame in selling a property to free up capital.

When my places with section 8 tenants are inspected yearly the inspectors just want to be sure that the paint isn’t flaking and thereby causing a situation that a small child may ingest the paint chips.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.