Best thing to do is evict immediately upon non-payment, keep their security deposit to cover most of the losses, swallow your pride and eat the rest.

You then have $1,000,000 coverage for any 1 loss (there are restriction to this statement but wanted to keep short).2)  You are looking for a commercial insurance product that schedules unlimited amount of locations on 1 policy. 

I'll order technical inspections for structural items (foundation, roof), but otherwise I know I'm buying something that needs a lot of work.

In your example, a $5000 +/- on expenses can swing the cap rate from 10.5 to 12% may not seem like much but depending on your debt cost could be significant.Lastly, some items should be easy to estimate (taxes, insurance, etc..)

Are you of the opinion that this increases your capex (which is not a line item in your numbers), and perhaps some other expenses as well?

On one scale, the scores go from 501 to 990 while other scales start at 300 and go to 850.As far as why somebody defaults on loans - the common story is medical bills, followed closely by loss of job.  

You might want to start the eviction process with the notice to pay rent or quit and see how she responds...she might just move out..and if not, follow-up and get her out of the property.I don't think you can start removing items from the property...you'll likely get it hot waters!!

Were you with someone and were the tenants items removed at the time?

Not to mention that an association wants to be prepared in the event a major loss takes place that insurance won't cover (I have one of those going on right now - $27k in mold remediation alone).  

Commerecial insurance does not use this system, but asks for "Loss Runs".