But I am wondering if my insurance would cover if they accidentally damage or burn part of the house (due to the extra wiring and lights in the garage)?

Nervous about no reserve cash in case of damages/accidents.OR2) Invest out of area, in a more affordable market, where I can afford a 20% down payment and hire agents, contractors, and managers to handle the rehab, leasing, management?

My concern is that if the tenants move out but damage the property, what is the recourse?

I bought a hurricane damaged home here in Panama City with a low-down, seller financed note and leveraged a partnership for the rehab costs.

How damaged does a property need for a bank to turn down a loan?

Or what if another tenant was physically unable to push a mower so he had to hire a gardener at an even greater cost to himself....would that count more towards the rent control limit?  

The action or crime of making a false spoken statement damaging to a person's reputation. 

Depending on the oak cabinets condition if they have zero damage they can be restained if needed (same for the cabinets in the bathrooms).You or a handyman can repair a chipped porcelain tub:  https://homeguides.sfgate.com/repair-chipped-porcelain-tub-25470.htmlDefinitely a new door on the standing shower.

Plus if you get a bad tenant they can do 5k in damage no problem.  

Turnkey companies that have experience and a good track record should never warranty tenant caused damage.