Keep in mind all of it is junk and covered in mold - but I don't want to trash it for fear of the owner coming after me for destroying his property.

If your home receives a good renovation and the tenants do not destroy the home your turn over cost should be minimized.

Even if the earthquake doesn't directly destroy houses, a tsunami could.

Unfortunately, that paint job only lasted about 2 1/2 years because my last tenants in there just destroyed it. 

And yes, small claims court is available, and depending on the quality of your tenant, most people do not want their credit destroyed by a monetary judgment against them. 

They have sinced filed the raze order, further destroying my chances of a sale even if I were to get the raze order removed.

Unfortunately if the place is destroyed only the parents of the three good tenants will be held liable.

I've seen friendships destroy when "responsible" people became irresponsible in a rental situation.  

Those areas have the shortest seasons when compared to those of the northern Outer Banks of Nags Head, Kill Devil Hills, Southern Shores & Duck.Those areas are subject to frequent road closures because of ocean over wash destroying the only highway in and out.Those are the areas to get hit the hardest with flooding and hurricane damage. 

If it's too exciting then you're probably doing it wrong.People aren't properly capitalized so when they have a bad combination of events, tenant destroys the place and won't move out.