I'm not convinced this guy isn't trying to ride on the real @J Scott's name/brand/coattails!

Hail damage that insurance gave a ridiculous amount of money for and i was able to put 12k back into the mortgage the first year.

Should I ride this out and give them notice to vacate the lease is completed?  

Everyone has capital and if capital is all you have to offer, you are likely going to get taken for a ride.

I doubled majored in chemical engineering and biochemistry from UT Austin, I got a full ride law school scholarship and got a JD, and I practiced patent litigation law for a few years with a big white-shoe firm in NYC.

In short, because they're adding in depreciation, your overall payout after a significant claim would likely be thousands less, and possibly tens of thousands less after a more catastrophic claim (wind/hail, tornado, hurricane, sizable fire, etc.).Always remember though, just because you have replacement cost in your policy that doesn't mean the carrier is going to pay you whatever it takes to completely rebuild the dwelling. 

I am a first time investor so I know this will be a long ride but in for the long haul :) 

I ride my bike in my area and talk with people, and ask regularly if anyone knows a person with a house to buy.  

If you don't either send it to me, or donate it to a worthy charity, but don't let your tenants keep it, they're not doing anything to deserve that kind of paycheck.And you'll say - 'But they're good tenants'....No kidding, they're getting a free ride, everyone will be a good tenant for that kind of discount.

They’re a great, easy, real estate product to ride up appreciation but they leave a lot to be desired in the cashflow department.