If the tenant doesn't take care of their issues than you become responsible.  9 out of 10 times you become responsible.I always conducted my own inspections well ahead of any section 8 inspections to get ahead of the game and fix any issues that may arise due to section 8 inspections. 

You can also get an idea of what people are getting paid for buyouts in SF on this webpage: http://sfrb.org/annual-buyout-reportsIf you already filed w/ the city and told them the dollar amount that you paid each tenant then I think it is too late, but if you only filed the first filing (which is just to let them know that you're having buyout discussions, that may still be an option).

@Alexander Merritt   IMHO low end rentals are only suitable for local investors that are in the landlord business and are going to scale up and own as many as they can get 100's have your own PM and maintenance and that's the ONLY way in my mind that stuff will work over any amount of time.buy the best that you can if your just starting out.

Personally I deduct the amount of the background check(s) from the first month’s rent but absolutely no one else does this.

I need to fix the garage, garbage disposal, and there's possibly mold in the attic (don't know how true this is since the guy who cleared my vents was getting me to purchase his service for $2k).

Credit Union: Fixed for 10 years, 30 year amortization AND no prepayment penalty?

I also put in two properties that I own, one has 18 years left on a 20yr fixed and the other has been paid off in cash.

I'm assuming the insurance company wants to pay put the least amount possible.

In addition, I'm more familiar with the buying, fixing, renting, and property management processes.

Is the number under the "Mortgage amount" the remaining balance?