Well some issues can be avoided by carefully screening potential tenants.  

There are a million things that could go wrong from a drywall screw penetrating a plumbing line to improper site grading, missing screens, doors/windows not opening correctly and on and on and on.

-They're thinking of doing a Bond for Deed (which is a land contract in Louisiana) that involves what I believe is unnecessary closing costs to the tune of almost $2000.

There usually is no screening process and unscrupulous owners or slumlords just slam bodies into rooms..often renting by the week.

You can get separate policies a tenant policy and a landlord policy, but that's unnecessary and more expensive.Your contract can address the assignment of loss proceeds and make the buyer an additional insured.

He was asking questions that were clearly in the post that he didn’t read and proceeded to ask me “when he could move in” and I mentioned that he has to do the same pre screening process as everyone else and that I am not showing the unit yet. 

I've learned from bitter experience to screen like crazy (including home visit) before signing a lease, to ensure the tenant knows how to keep up a property.

They are reading off a screen, and the box next to "tax returns" has not been checked.  

I was able to gain an edge here in Scottsdale due to the building being master-metered, with lots of deferred maintenance, and about as energy-efficient as a screen door on a submarine.  

They don't really know how to manage properties properly, sometimes paying un-screened tenants to move in so they can offer a product as "turnkey".