That was fun.Because of this setback limiting my ability to leave my house, I sunk more time into my YouTube channel where I’m seeing exponential growth and am on pace to make over $6k this month from ad revenue alone.Life is good.

Ordinarily those tenant vacated damages would be too remote, but it sounds like they were contemplated by both parties at the time of contract.Were I in this situation I would be looking to state law to determine if the EMD is truly the extent of my potential liability as a buyer. 

Repairing to sell might recoup some costs, but given the market and your limited funds, selling “as-is” is likely the best option to minimize further losses.

By observation from a few I've seen in the area:1) Find old guy, hopefully with limited faculties not aware of the market value of his property2) Tell him you love his place and will enjoy owning it and that you're his good buddy who cares about him.3) Offer him at least 10% under FMV and tell him no one else is going to pay that much.   

My Insurance Agent has strongly recommended that I put a Construction Agreement in place with my Contractor to shield me from liability, etc. 

No limits to late fees either.

PM's will have plenty of contractors to help streamline the process for you and limit your liability when dealing with contractors. 

Failure to meet material participation rules will limit rental losses to offsetting passive income or carrying forward.This post does not create a CPA-Client relationship.

We really want take advantage of accelerated depreciation to lower our tax liability. 

They offer a $10K repair fund to fix damages in addition to SD plus warranty for appliance repair etc.I have no say in whom they choose to move in, whether there are animals, limit on # of occupants etc. they reserve right to inspect property so i have no idea if they can tell me to remodel, paint etc.does this make sense i have a vacancy coming up in October (bad rental timing).