Sine her rent is unpaid, there is not enough security deposit to cover both unpaid rent AND damages that may need repair. 

This could possibly damage the A/C unit.

3 blocks from my primary residence, location, location, location!

So, painting the interior walls, replacing the old cafe green countertops with butcher block, and updating the kitchen floors and backslash, as well as the bathrooms with a "beachy" tile!

So, painting the interior walls, replacing the old cafe green countertops with butcher block, and updating the kitchen floors and backslash, as well as the bathrooms with a "beachy" tile!

I'm afraid if I choose a big company, they will let just anyone stay at my property and won't care about possible damage.

No big deal as long as there's no damage to the roof I think, as this is a very minor cosmetic issue.

A lot of water damage to the entire subfloor, the bathtub was tiled, but not sealed properly and black mold was around almost all of the grout.

A Canadian tenant who rented from us for many years decided to move overnight without paying rent last months rent and the security deposit was insufficient to cover the damages.

You could buy the ugliest, most outdated house on the block and FHA would not care, so long as there is no chipped paint, missing handrails on stairs, holes in the roof/walls, etc.