As an individual occurrence I would probably have the tenant document the event on paper in their own words, have them sign and date it, then replace the item.  

Some of our criteria includes having a credit score of 600+, no prior evictions or felony arrests, and no history of collections.   

Currently my credit score is 713 and a stellar credit profile history also.

There is also a lot of documentations that needs to be done for pretty much EVERYTHING. 

It gives them a fresh start, and also documents any current damage/condition of the place for when they move out.

As long as you have a 12-24 month history of renting the property most banks are able to cancel out the debt obligation when considering you for another mortgage. 

Hello BP.I have a individual that is interested in funding one of my projects as a private money deal, but they have concerns about the paperwork and tax documents being a serious hassle.

Do everything by the book, and in the case when you are faced with a lawsuit, use a good liability policy as a first line of defense, and your LLC that you have properly structured and documented  as the second.

I assume the winning bid did not meet the reserve but I can't find any history.  

https://www.biggerpockets.com/renewsblog/2014/01/17/dodd-frank-law-changes-seller-financing-investors/Feel free to read through the 900 page Dodd Frank document to really immerse yourself in this issue!