I would like something more iron clad to include specific damages and such.

The property is currently listed for $70,000 but needs about $30,000 worth of work (floors need to be replaced, all moldings need to be replaced, all walls need to be repainted, caulk around all windows is black and needs to be replaced, a lot of doors are broken, AC units needs to be replaced, room most likely needs to be replaced, two large trees may need to be removed to prevent foundation damage).The property has been on the market for about 5 months and there aren't any offers on it.

Most of the investors I know own their properties in their personal name and have an umbrella policy to pay for damages above and beyond their standard policies.

If there were issues arising from excessive damages, such as a borrower rehabbing and destroying the collateral, that is another matter for civil courts to assess consequential damages.That leaves seller financed transactions to be assessed, to the financial side.Dodd-Frank, the SAFE Act and all other underwriting guidelines fail to address the ownership of the note as an asset, much has to do with servicing and reporting requirements, but aspects of asset valuation are totally ignored.

It is hundreds, maybe thousands of dollars in damage.

The frame was damaged as well as the trim.

To clarify, I will be replacing the boards that need to be replaced due to damage.

If you don't, then you can be held liable and be made to pay for damages.

Those properties have mold and water damage.

When there is a future need for a tenant to pay a late fee, a lease violation fee, a legal notice fee, or pay for damages while they are still a tenant, then the pre-paid account is tapped first and the tenant invoiced for the remainder.