I know I run the risk of being stiffed the final month and potential damage to home, but I have also heard renters can have the extra month rent applied through the course of the year if needed, so it makes no difference?

. ,, and do a move in check sheet with him as of date you took possession so any further damages are now something you can charge for.

When I first saw the title I thought perhaps some landlords included a penalty in their leases that allowed them to bump off tenants who failed to pay rent or damaged the property.Tempting...very tempting.Gail

Could also be the damage you noticed on the roof while looking at it from the backyard or moisture you saw under the kitchen sink that "could" cost a lot of money to repair.

A few other basic things are: check water pressure on sinks, light-switches work, heaters work, problems of mold in bathrooms, and mold/water damage around windows and door openings (especially windows if they are not vinyl).

I have it under contract for $150k + Closing Cost($5-7k)[not big fan of the closing cost] so far I have no hard money invested.During our due diligence we found a lot of moisture damage to the flooring due some leaky sinks and water heater and I personally think neglected maintenance.

Also, it will be difficult to prove any future damages, because they will claim that existed before, and you will have no evidence because you weren't there when the lease started.  

In my town, Keansburg, NJ, most homes were flooded, as well as mine, and the ones that were flooded and "substantially damaged", 51% of more of damage, would have to be lifted. 

Obvious structure damages that was tied to other damage that was hidden.

I could see this going almost like a Usury type deal with treble damages and everything paid into the loan is credited as principal times 3....