I don't want to kick someone out cause well that's pretty messed up. 

But whereas it has fallen into disrepair and has some water and termite damage and needs hundreds of gallons of paint and hundreds of yards of carpet, it has potential.

I don't want to kick someone out cause well that's pretty messed up.

We have pulled out drywall and ceilings in areas of the home that need to be replaced from old water damage.

I did not find any.What do you think caused this?

It's when he installs it improperly and causes $30,000 in interior damage.

One night, there was a small fire in the attic caused by faulty wiring.  

In Calif with a licensed MFU 5+, the fire marshal requires working CO+Smoke detectors and annually replaced extinguishers.In 2013 a cigarette lit the couch on fire and we suffered $95k damages. 

I am in the same field, and I got into real estate and think it works fairly well with education (if your job has some flexibility like mine)...I can recall spending like a hundred grueling hours fighting over half someone's deposit in the legal aid office and stalling the eviction an extra week or two on  technicalities (a noble cause for sure), but they still, of course, were evicted eventually with no money.

If you get one and the borrower/buyer pays off the contract you better be able to convey title or they can sue you for the whole contract plus damages for lack of performance.