Recently in the local newspaper in the Fort Lauderdale area, there was a story about a teenage boy who stole a BMW from a Airbnb rental he got for his 18th birthday. During this "joyride" he killed a driver. The owner...

That's why Robert Kiyosaki and all the gurus say owning a house is a liability and not an asset.

minimum insurance policy is $500 a year, did you include holding costs into your rehab, builders risk/liability? 

The bank I use primarily in Colorado will count 75% of my projected rental income towards the debt when I buy a new property, so in the case you're providing above, you're creating a nearly $1000 liability for yourself from a DTI standpoint every time you buy a property.

Your liability could potentially run into hundreds of thousands if contamination is found after you take possession.

(Ironically, last month the tenant's dog (cane corso) attacked my husband so we required the tenant to remove him from the property for liability reasons.)My questions:  Who is financially responsible for the damages?  

I am trying to remove my mortgage liability when I apply for a new loan. 

I don't mind gambling a small fee to each interesting property to discover whether or not there is a problem, but to stumble into a million dollar liability will end me.

You should track your income, expense, asset and liability and file your tax return to the best of your knowledge.

I would suggest having separate companies, for asset liability reasons.