Market effectively, price correctly, vet prospective tenant/buyers, and you should be fine.

Also, statistically speaking, lower-income housing can have higher vacancy and higher turn costs due to damage and evictions. 

We have a cooperative occupant who will most likely not cause any damage to the property and they get certainty of outcome and cash.

Insurance will pay for the damage if it fails.

One tenant decides not to pay can eat up 2-3 months worth of lost rent, plus court costs, plus damages, plus time vacant while you make repairs. 

The landlord would then pay for the cost of the hotel.I don't see compensable damages here.  

If the friend's unit is not your rental unit, there is nothing you can do, other than be happy that you now know where to serve the evicted man if you plan to sue him in small claims court for your damages (assuming that he has wages to garnish, or assets to attach). 

Just try to avoid vacation season like Christmas holidays and summer so you can get full attention of prospective investors..You should also understand the local market for those McMaster rentals.

Yes you can as long as you have a deposit and your lease states the deposit can be forefit for damage to the property. 

I've got a unit (townhouse) that has sustained some water damage as a result of contractor error when replacing the roof.