Get honest with the city.. try to give little info and not incriminate your self.

Yes, you can find a good, honest PM who will treat your 1 rental with the respect it deserves.

Yes, there will be short-term consequences, but honestly, like you mentioned, “don’t worry about it.” 

If you want to hedge yourself against this extreme possibility, have both savings and a HELOC.

I'd rather have an honest and happy pet owner then a soiled house from a pet with no pet deposit money to help clean it back up! 

Find a mentor who is honest and had some success.Don't pay for a guru.  

@Joseph PuglieseIf your business is accrual basis and previously accrued the revenue and included it in taxable income, yes you could write off the bad debts.If cash basis, you don't get to write off revenue you never received as you never were taxed on it in the first place.There are extremely limited exceptions to this, particularly if you're cash basis and recognized the revenue under constructive receipt, however I suspect your fact pattern is not that complicated.You can deduct your normal operating expenses of the rental.Your CPA is best equipped to help you deal with this.

I want to present honest, credible and accurate deals to my investors.

@Sam Shueh I would agree that granite is a better option here...it has become extremely cheap.

Here's a list of what's included with this home:New drywall & insulationAsbestos abatementNew copper plumbingNew air conditioning, and FurnaceNew recessed lighting throughout New bathrooms (two bathrooms)New kitchen cabinetsTankless water heaterNew garage door New roofHard-wood flooring ceramic tileNew granite kitchen cabinetsUpdated Fireplace in the living roomNew interior and exterior paintI'm no expert but this seems extremely high.