But I draw the line when there is risk of damage to the property, annoyance to the neighbors, health concerns, pests, etc.

I'd check for that before installing LVP and replace the subfloor where needed and treat any termite damage. 

Really low prices bring dregs and all the work you did could get damaged.

If I was the tenant that got damage from another tenant's water heater, I would expect him to pay the bill.If it was a pipe in the building and not in their unit, then I would think the landlord would be responsible.

Alternatively, you can offer more such as central air when the competition doesn't have it.Avoid areas with a lot of new rental deliveries.

(high rise condo) The vent does not work and as a result humidity damaged the ceiling. 

Choosing a professional restoration company seems really important, especially for damage like water, fire, or mold.

This way the tenants will be held responsible for any damages. 

I just started working with THD, I had the same situation as Shankar RamaniI had a 3/2 SFH posted for LTR, they reached out asking if I am open to short term rental, I was hesitant first but after searching the company and their business model, I was willing to take the risk if they pay me a good premiumThe person who reached out to me works with the insurance side of THD ( they have corporate leasing department too), and her tenant had a fire damage in their house so the insurance company wanted the tenant to stay somewhere until the house repair is done.

There was a leak and about $10k in water damage done.