If you have questions about what are good qualifying criteria, @Joshua Dorkin just posted a great thread on marketing a rental and qualifying a tenant. https://www.biggerpockets.com/renewsblog/2013/01/2...https://www.biggerpockets.com/renewsblog/2013/01/0...Although you are probably right in that you are not going to recover your money due to your prior tenant not having any money.

The practical issue comes to who the bank can recover from after things go bad and personal guarantees help the bank to solve that.So, for example, you can open an LLC or whatever business vehicle, but practically, banks aren't going to loan you unlimited money since a fresh company probably has no business history/assets.

In your case, the tenant being on section 8, even if you did have a couple months of lost rent, the chances of recovering that loss are next to nothing.

Lawyer up and/or do whatever the law will allow you to do on your own to recover the money.  

I will and others will do whatever they can to help you in your difficult time and help you rebuild and recover from the tragic events that unfolded without notice.We can have everything we ever want/need and a few moments later we could possibly be all gone in a matter of minutes and all we have left hopefully is our own lives, and hopeful those we love and know.

And it’s been over a month and has not recovered.

. $120k in profit, meaning you recover your equity, repay all the debt and repay whatever the cost of the rehab sounds like a great return.

Prices have taken a while to recover from the the crisis 10 years ago, which makes it attractive. 

The concern we've had in the past with throwing anything away before the 30 days, is someone saying that something existed in the property that actually didn't, and not being able to recover the property as proof that something wasn't there.

At the time we decided to just take out what was necessary to recover our investment in the property, which amounts to a 70% LTV ($150,000).