Wages increase so significantly that it allows homes to not drop, stay as is or increase (fat chance).Clearly someone is going to win in this (potentially current homeowners and upper middle class), with losers being Millenials, Gen Z and others who do not own OR they are the winners and losers are anyone who bought the past 3 years.Either way, someone will win and someone is gonna lose.For me, I play offense and defense - I am consistently looking for deals but also if #1 happens, am I protected.

It's your job as a landlord to pre-screen potential leads (gross income, credit score, evictions or not, etc) and then only schedule showings for those people that meet your screening standards.

I have several hundred thousand to invest, but I am simply not finding any worthwhile deals after looking at hundreds of potential deals in various cities. 

Attracting Tenants: Tips on marketing the property to potential tenants who value sustainability and might be willing to pay a premium for such living conditions.Maximizing Cash Flow: Advice on structuring the investment to ensure a steady, positive cash flow and a strong return on investment, considering the property's sustainable features.Sustainable rental properties can pave the way for a new standard in real estate investing, balancing environmental stewardship with financial prosperity.

I also regularly underwrite properties for investment potential (aka cashflow!) 

All potential lots with direct road access sell as individual lots without any development.  

@Kim Durst Potentially you could take the $10k, then have another $10k (or whatever amount you feel covers your cost if there are further issues) held in escrow.

You not taking action on this could potentially create issues in getting your property back.

@Alexander Rodriguez so, the challenge is all you know about is the dog damage - there may be more:(Would NOT recommend letting them try to fix the floor damage - they will just make it worse, or may even hurt themselves and sue you.Pet urine is NOT easy to remediate.

I got a good referral about this potential tenant.