My assumption is if she does not pay the contractual amounts above, she will be in breach and I keep the deposit in worst case scenario - but that leaves me on the hook for any damages, downtime, and finding a new tenant.I know the answer is there is probably nothing you can do (aside from sue her).  

One think I learned from another investors mistake in my market is that when a flood claim is made, the insurance companies report that to the city building permit department. 

I was the world's worst employee. . .I was fired.

@Phat Dao, most improvements you hire a contractor for LOSE money and a garage is probably one of the worst tbh.

I am treating my first deal like the real life intro to real estate that it will inevitably be but at the same time, I don't want property #1 to be a massive mistake. 

We feel this is the right amount to protect our assets in the worst case scenario.

Don't make the mistake of just buying anything and get yourself into a bad deal.

Pass this along to your client:)In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

I set this based off of, worst case scenario, if I had to pay it all, what am I ok with?

Took forever made a ton of mistake and did all the work myself but I learned a ton on that deal.