There are some rare and complex circumstances where I see this would be beneficial.

The tax treatment in such cases may vary depending on specific circumstances.

You may be profitable, but I'd prefer to avoid the possibility of having to do unnecessary repairs or not holding my tenants accountable for damage when I know their actions might have caused any unforeseen damage. 

CommissionerYou really need to see how this operates in the real world, and with a Tax Court Judge looking at all the facts & circumstances.  

However, this is not specific legal advice to you, just an opinion based on the circumstances described.Do I Need an LLC to Invest in Real Estate?

If you’ve yet to build up substantial credit in the U.S. you can apply for foreign national specific loans that don’t take credit history into consideration when qualifying as in some circumstances you can get better rates and terms applying as a FN when your U.S. based credit history is in it’s infancy.

I could be way off, but I really don't think you can buy homes at the tax sale in most circumstances with $100-$200,000 spreads between purchase and sales price. 

Renters insurance will not under any circumstances "satisfy" your mortgage company.

So, while on the surface it sounds like you are entitled to your money back, a closer look at the contract and circumstances is needed to verify that.

Effectively a 'Firestorm' is a dry hurricane that rains fire, with nearly indefensible circumstances, just like the catastrophic flooding, hurricanes, tornadoes and other disasters they have and will intensify in severity and rapidity.Beyond directly impacted property owners, investors, insurers and businesses, the downhill effects of the SoCal fires on the immediate and surrounding areas are astronomical and still somewhat incomprehensible.