While I haven't personally experienced a tenant causing major fire damage, here are a few thoughts and suggestions based on what I've learned from the BiggerPockets community:First and foremost, I hope everyone is safe and unharmed.

If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing.

I personally found I’m good at it if it’s a simple job, normal easy walls, but hire out if its 2-story height, painting cabinetry, wood windows etc as they are a all a big pain.

Call all the auction companies in your area and get on their mailing listing (make a personal contract with auctioneer associates - let them know that you are a buyer)  they will email you a list of up-coming foreclosure auctions.Your benefit by getting to the owner early, is that you may be able to 1.take over the mortgage by making up the back payments 2. get a deed signed, 3. take over the existing mortgage 4. advise the owner how to delay or stop the mortgage foreclosure 5.

Find one in person.

Whenever someone files for bankruptcy, there is an automatic stay of all legal proceedings against that person. 

They are business credit cards which report to different agencies than your personal credit, so it wouldn't affect your personal status at all.

Ben, So what I am hearing you saying is you had a property in LA that was worth $755,000 and after the sale of that property, you cleared $366,000 which you turned and bought a property in Houston for $400,000 by using the $366,000 and adding $34,000 more in personal funds. am I correct in my understanding?

Quote from @David Eyal: This is actually very simple: don't get involved in personal issues.You offer them a renewal.

Under the FHA rejecting a person for the ESA dog is a form of discrimination against those with disabilities.Your post suggests that this person has passed all your screening criteria except for the ESA dog.