If they have more than $2,000 worth of judgements, especially a lot of judgements, they aren't good with money and things will not work out.

If a tenant sued you, they could expect to collect on any judgement.

This is a GL claim on the landlords property policy.If the PM fails to take action or makes a mistake in judgement while managing a property, this is an Errors and Ommisions claim on the PM's E&O policy.These examples go on and on, but I think they summarize what we have covered in the post.

I'll definitely look at a credit REPORT to look at things like how many missed payments they have, judgements and/or collections against them, etc. 

I have already come up with1300.00 of needed repairs and negligence of property that I can prove but technically the rent would have been 150.00 monthly higher and I would like to include that in a judgement. 

As stated above, there are many opportunities for a tenant to move out prior to an eviction going to judgement. 

Use your best personal judgement here but knowing the little I know about the situation I would assume it's an empty threat.

Against my better judgement, I allowed my brother in law to move in from out of state with my wife and I.

The previous owners went to court, won the judgement, and we are now waiting for the sheriff to do the lock-out.

The IRS will make the judgement call (or they will send it back to the DOL, who makes the rules).