Needs all new cabintry, windows, doors, roof (has some life left), fixtures, fencing, some electrical and plumbing changes, and some framing/drywall due to termite damaged sill plate in areas.

Small details like a handrail on stairs or window locks can cause your unit to fail an inspection, delaying the start of rent payments.

Quote from @Khaled El Dorry: I have a portfolio of 3 SFH's (2 in Jax and 1 in ocala) and 1 duplex in port charlotte (never flooded or damaged due to hurricanes) that have done very well for me.  

Despite the risk of losing their Section 8 status, tenants rarely pay their share.There is likely to be significant damage caused by Section 8 tenants.

It depends on a lot of factors; primarily the local jurisdiction rules that may limit lease changes (in Portland/Oregon rent, security deposit, screening fees, an no-cause evictions are heavily regulated).

I have video and pictures of all the damages and had sent him the itemized list on 5th day of his move out, which is within 30 days.

Having all Section 8 tenants may cause you to have a higher cap rate on your exit due to a higher headache factor surrounding Section 8.

.- increase in vacancy to 30%, 40%, 50% (this could be a combination of bad luck: one unit water damaged, one unit tenant trashed, and you have to evict two more - on a 10 unit portfolio that would be tough, even though only temporary)- lower rents (for whatever reason, what happens if rents go down 10% or 20%?)

Do damage to the industry as a whole. 

Get a damage restoration company involved.