(He very brash and aggressive and wants to control the conversation)My assumption is he’s tried to sell the property before and was offered 80K because he keeps throwing that number around as what he would never take.He claims it’s a 3/2 ranch that’s vacant and sits on 5 acres of land that he owns free and clear of any mortgages or issue with liens or taxes.

Requiring renter's insurance can also help protect you from claims of damaged property. 

Sounds right, as long as the loan is used for rental activity, there is no issue claiming interest.

I am not worried about trying to claim ownership or anything, since mortgage is under Homeowner (A)'s name.

-Contact HUD (BP is preventing me from listing their phone number)-Take the landlord to small claim's court-Contact the local media and tell them about the situationYou can even find a lawyer who might take the case pro-bono just to nail the landlord to the wall. 

I admire your vision as a Medical Professional to get started in self managed real estate.

There is not a problem with deposits being refunded in our state and if it occurs the former tenant has a clear path for recovery of triple damages through small claims court and subsequent lien as it would be non exempt property  

If you have an LLC you can have your attorney or title do a quit claim deed.

If you have interests, skills, resources in other areas such as commercial, storage, medical, senior homes, etc.

I've decided, at least for now in my market, to focus on commercial office/medical/service investment properties because I'd rather deal with business owners, during business hours, than low-income residential tenants.