My concern is that the unit under eviction will be heavily damaged with no security deposit and insurance doesn't cover tenant damage, though a criminal act.

Since I do target the 15-20 year old homes, they normally have the original roof, AC, plumbing etc. so I pay attention to that and set aside cap-ex funds accordingly. 

Must be licensed, bonded and insured.

Usually for the buyer this includes, property taxes, insurance, title company fees, and lender origination fees.I’m not a huge fan of using percentages to estimate these costs.

Flood insurance costs....I would really appreciate any advice on the vacation rental side, I have no experience doing this yet, and I am not sure it is something we would really want to get into or not.  

Then I either get better than average rents or I'll sell it.First I repair/replace things, if needed, that cause more damage (to property or life) if they fail, roof, water heater, plumbing & electrical... anything health and safety related. 

I've been reading about landlord insurance to cover liabilities and damages.

Highly advise taking the proper procedures to legally becoming a property manager, even if it is for a relatives property.Do you have liability and E&O insurance to help protect yourself?

Ask the title company to do their standard title insurance work for both buyer and seller.4) Do the due diligence on the property and allow the bank to do their underwriting process.5) Schedule the closing, wire the money, and sign all of the documents to transfer ownership.Is there anything that I'm missing or have left out?

Purchase price $ 510,000 Purchase Closing Costs 10,200 Estimated Rehab Costs 5,000 Total Project Costs 525,200 Downpayment (36.9%) 188,000 Loan Amount 322,000 Loan Interest Rate 5.250% Total Cash Needed 203,200 Gross Rents 61,440 Monthly Rental Income 5,120 Expenses Advertising 25 Gardening 66 Insurance 250 Management Fee 512 Pest Control 50 Property Tax 638 CapExpense 512 Security System 280 Vacancy 512 Total Monthly Expenses (55.6%) 2,845 Monthly P&I 1,778 Total Cash Flow 497 Performance Metrics Monthly Cash Flow $497 Cash on Cash Return (ROI) 3.17% DSCR 1.28 Purchase Cap Rate 5.35% Proforma Cap Rate 5.20% 1% Rule 0.97%