Insurance pays for losses incurred when the policy is in effect, and this is prior damage.  

If so consider a rent increase.In effect your resident is subletting even if they don't charge rent.Treat the army buddy as an applicant to rent.

This is because of the depreciation deduction that can be taken on the investment.When properly executed, rental losses can be used to offset other income which effectively shelters that other income from income tax.

The cash flow would effectively shift from $74.54 per door to $202 per door making this deal more attractive. 

To  buy this at the right price and get it renovated efficiently and effectively, you will need a team on the ground with whom you can trust.

I signed an agreement to manage a duplex and not even two months later, I received an email from someone I didn't know informing me that she purchased the duplex and wanted to self-manage.

I use self directed accounts so I know exactly what my fees will be each year and have more control over what I purchase as an asset.

It did drop to 11cents (plus misc fees, effectively 12 cents) here in Vegas a few years ago but I don’t think it’s ever been 8. 

Where you are maybe be effected by the weather. 

If they are thinking of lending from the 401(k) and it is a self-directed plan - then any transaction that touches you is going to violate the rules.