If the premises are damaged or destroyed prior to closing, Buyer may either terminate this Agreement and be refunded the earnest money, or close this transaction and accept the premises "as-is" together with an assignment of the insurance proceeds relating thereto.

I'd rate the tenant a 2/5, as she didn't completely destroy the property and paid rent eventually.

You also need to do an inspection - I had a couple of board horses on my farm and they destroyed my stalls (ate the boards and tore up fences).  

This can really destroy your liquidity and can lead to a death spiral.  

However, worried I'll regret not selling at what some people claim is the top of the market and then losing my tax benefits of this being my primary residence and being left with a house destroyed by tenants.Any advice, ideas, stories, or thoughts would be greatly appreciated!

You will expect it to be completely destroyed over the next 30 years and become worthless.When you are looking into the analysis of these 3 kinds of properties for appreciation metrics, you can us a spreadsheet for Property A and it will look like this:Property B, no need to have a chart, you know that the rents will remain at $1,000 per month since it's in a stable rent area.Property C, you may have both decline rent along with the decline of the value of the mobile home.Now, taking this into consideration, even if I finance Property A so that I wind up losing Cash Flow in the 1st year by NEGATIVE $40 per month, by year 2018, I am now positive cash flow by $10. 2019, I am now $$63 in positive cash flow.For a Property like A, the increasing rental appreciation will make a negative cash flow eventually positive.Property B and C are not like that.The likely increase in Rent and Price Appreciation is exactly why Investors like myself are willing to forgo on the Cash Flow NOW.

The unexpected cost to us will be about $400 for a deep cleaning, trash removal, and some towels they destroyed. 

I had a previous tenant with a dog destroy everything in the home and I had to replace all the furniture, queen sleeper, mattress, bedding, linens, area rugs, flooring, so I am really leery about renting to people with pets now.

When he leaves I'll see how good of a job he does cleaning but as of now the carpets are pretty much destroyed.

So you don't want your money in where people are going to be in and out and perhaps destroying some things along the way that you paid top dollar for.