This also won't apply if you are grossly negligent in how you manage the property.

Now it goes from being an 'Act of God' to negligence in the event the tree causes damage. 

What if the tenants rents are so low, never been raised due to negligence, that they are going to do everything they can to squat or keep the low rent?

That being said, consider putting 25% down instead of 20% down as it should drop your interest rate by about 0.5% and make the property cash flow much better.  40% is overkill IMO, the improvement to your interest rate is negligible at best. 

The decisions they make regarding their finances is not necessarily optimized for a real estate investor, meaning you can get recklessly negligent HOAs who don't make necessary repairs (like in the Surfside Condo Greg mentioned) or who are over-zealous in repairing/replacing things that work just fine.

I say that because you won't be able to pull out much, if any, when you go to refinance - the only equity you will have is the amount of principle paid down, which will be negligible in the first year given how loans are amortized, and the amount of appreciation in that year.

There is accidental damage (broken window), negligent damage (left the tub running and it overflowed), and purposeful damage (kicking the water closet loose from it's mounting bolts).Based on how you describe her financial situation she seems like a forever renter (a potential long term customer, if you treat her right--and if she behaves decently and pays).If it were me I'd just charge for having the window fixed, and pick up a pet deposit (probably over payments as she seems to be short of cash a lot--as most renters are<--(that's why they rent)).And since its a SFH I'd ignore the two adult offspring (for the time being). 

I am using a non-traditional loan which requires negligible downpayment with good rates.. the only downside is I have to occupy until the loan is pending.

The higher rate is negligible and you'll have flexibility should something go sideways.

"§ 214 (C) THE TENANT IS COMMITTING_OR PERMITTING A NUISANCE IN SUCH HOUSING ACCOMMODATION, OR IS MALICIOUSLY OR BY REASON OF NEGLIGENCE DAMAGING THE HOUSING ACCOMMODATION; OR THE TENANT'S CONDUCT IS SUCH AS TO INTERFERE WITH THE COMFORT OF THE LANDLORD OR OTHER TENANTS OR OCCUPANTS OF THE SAME OR ADJACENT BUILDINGS OR STRUCTURES;"  So if your property is losing value because of the tenant you can evict