Hopefully, you'll also get the "walk through checklist" - in the event this tenant left the property in "less-than-similar" condition to when moving in (Note: You cannot deduct for "normal wear and tear.")  

At any rate, we are in the first stage of the process and don't need to do anything until one of the parties escalates the situation.Adam: thanks for your reply.

The prices in Los Angeles are so high right now that I can't buy here, so Im thinking about buying out of state, I'm still saving and searching, and yes, Id like to lower the interest we are paying on the loan.

Currently we are selling those 2 losing assets.  

And if you itemized and have receipts for all deductions taken, then it just comes down to the judge's decision on whether you are taking money from the deposit for what might be considered normal wear and tear vs damage.Maybe @Chris K. can weigh in with his opinion.

There needs to be an "Occurrence" that the policy needs to respond to.No policy covers wear and tear.Example - If a strong wind storm damages the roof, and water starts leaking into the building from that damage, the damaged roof and water damage would be covered. 

We are setting up for the next 6-12 months in a rental town home.  

or if you're looking to buy those properties do you generally just have to expect to pay for $600-$900 worth of inspections to cover yourself from any red flags?

The market where we are has been very hot lately.  

We are new to investing as well and always looking to connect with others.