Also, double check with your lender because FHA does not typically loan on investment properties.This is not legal advice and does not create an attorney client relationship.

I would take pictures and get estimates on what it will to take to replace, repair and clean.IF you actually have to go to court take your documentation.

In looking at the area and the pictures, this property is a good deal nicer than any of the small multifamily properties in the valley, and it is also cheaper than most of the rundown duplexes in the area. 

@John Vu glad to see you've got a picture now LOL. 

Look for similar ones in the area on zillow/realtor and just look at the pictures and what they are listed for.  

We literally have had zero vacancy on most of our property in years.Maintenance is typically $1000 a year on a 1 million dollar property and our values double every 10 years, actually every 7.8 years but let's call it ten.So if you can afford to get in you will create more wealth over time than say a city like Memphis where I invest in the USA

The only assumptions I'll change for this one is doubling the rent.Still losing $27.35 a month.

Zillow doesn't think it's for sale, but has pictures of a crappy house. 

At that rate, within 8 years rents will double. 

It's all odds based.You run a good chance that the tenant won't challenge it as they did do damage, however if they do challenge it & take you to court you'll probably loose & most jurisdictions allow the tenant to sue you for double damages.