It's up to you what kind of a landlord you plan on being over your real estate investing career but you do have an unwritten covenant with the society at large to serve, and protect, In other words to be responsible.

It's a nice house and has a lot of valuable art in it, so we want to make sure that whoever we rent it out to is responsible and respectful.

I want to use a hard money lender to purchase a medium-sized multi-family property for buy and hold purposes. 

I do have a “safety” stockpile account where I store money for these purposes: taxes, returned security deposits, etc.I have a w-2 job and am having taxes taken out for that.

Call the local health department and find out who is responsible for housing code inspections.

Also if you do buy for STR purposes go duplexes and up in this market.

It's their responsibility to pay or they can find somewhere else to live...dropping funds at my bank is not that complicated.Definitely get a lease in place...maybe month-to-month until you learn they are stellar tenants. 

I'll try to dissect your response.

(b) If after a casualty loss the rental premises are as a practical matter totally unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, either the landlord or the tenant may terminate the lease by giving written notice to the other any time before repairs are completed.

,I've seen a lot of turds, and people purposely crapping in the toilet when the water is shut off so it smells.. but outside the house.. wow... just wow...the smear marks are the real gross factor...