If the unit is damaged because the leak was allowed to continue, I would charge the tenant for the additional repairs required.If tenants have such obvious lease violations, there is a high risk of additional problems down the road.

If you qualify for conventional loans, bank financing is available to use for flipping and is much cheaper than hard money, but also slower and more headaches.Remember that buying a house requires money, but it doesn't have to be your money (although it's simpler if it is). 

As an aside: Contact your credit card company and tell them what happened and most likely you'll get a 'charge back'.

Otherwise, I was going to look for a bank loan and try to get something that charges me as I draw  (vs getting one big loan all at once) and slightly lower interest.

There has to be some form of a written agreement on who gets what of the profit, who's in charge of maintenance, what happens when a partner wants out, who's on the loan/title... etc  I find it hard to believe that this person wouldn't just take this deal and run with it on their own since they are funding everything with their money and I won't be giving a dime.

You’ve got some great options to choose from, cheaper prices, increasing rents, and continuing appreciation potential. 

In the more rural areas, prices are obviously cheaper, but they have there own issues such as fluctuating demand because of oil/coal booms and busts, limited selection of tenants and property managers, etc.

That's considered "neglect" or "abuse" and I would seriously consider charging the tenant for at least a portion of the repair.In the future, you should only renew after a complete review of the tenant's payment history, communication, care of the home, etc.

Also there is a laundry room that he currently doesn’t charge for, I’ll be adding coin op laundry and charging a small amount. 

My lender is charging me $2400 for the rate lock.