A BUNCH OF DRAMA ensued and after that I declared I would never rent to a tenant with a criminal record again. 

Where were they declared unconstitutional? 

I'd imagine that guy had to declare bankruptcy. 

It was during the time when Detroit declared Bankruptcy.

In fact, they are named on your insurance declaration page.

Something to remember about renting out a condo is the condo declaration documents may have a restriction on renting it out. 

All that is to say that the foundation doesn't even have to be touched for "total loss" to be declared in most situations relative to a fire.The real question is where's your profit? 

See lines 268-276 on page 7 of the state contract:"DEFAULT OF AGREEMENT BY BUYER: In the event of any default of this Agreement by the BUYER, the SELLER shall have at the SELLER’S option the right to declare this Agreement null and void with no further demand, or to demand and sue for any of the following: 1) Termination of this Agreement; 2) Specific performance; 3) Termination of this Agreement and an amount equal to 10% of the Sale Price as stipulated damages.

Trying to figure out how to declare on my personal taxes without causing any red flags.  

Specifically in Texas, this is really important because this is where you declare your "homestead".