I expect that to happen again: Especially if people start pugging courts with class action suits for loss of income or property due to Covid fraud or riots.As landlords, we need to do even more due diligence on prospective tenants.

I have a feeling that I will not be able to get anything from the seller if I have major losses.

Sometimes, taking the short term loss to just get past it is the way to go.

Lastly, it allows me to separate things like Loss to Lease, Re-positioning Costs, and Vacancy on the P&L for performance tracking and lender reporting.

The electricity is a tangible loss for the tenant.

If you have no coverage, it will be your responsibility to defend it and, if upheld, pay the loss earnings and med. bills.

It’s not what you want, it won’t cover you in the case of a loss, and is probably more expensive than a landlord policy, which is what you want. 

I like the prior posts as tax delinquent people tend not to respond to anything but a good shaking, in person, and that requires a door knock and a principal who opens the door.Also, they may not live at the subject property and have to be located, sometimes "skip traced" and that located visited in person, often multiple times because these people have busy schedules, evidenced by their priorities eclipsing their need to protect these properties from loss. 

The plan is to flip a property using an equity partner to provide the cash reserves and a hard money lender for the bulk of the purchase and rehab.We originally planned on all cash, in which case we would split gains/losses 50/50.

Everyone has set backs in their life (i.e. divorce, loss of job, death in the family, etc), but that's no reason to stiff you on money they legally owe you.Small claims is one option, depending on the amount and whether you think you can collect on a judgment.Another option is collections.