I also set aside some preventative funds before "distributing" cashflow, as this is going to give me (and my partners) the best expectations and most stability in our investments and earnings.However, most people who are advertising to woo clients are not doing that because they would rather promise you $400+ in monthly cashflow per door and then experience $200/month in average "Cash calls". 

Prevention is far superior to solving a problem....Now ask me how I learned that!

The prep to make this prevent water damages to the rest of the house will cost more than anything saved.Subway tile is in style and super cheap if shopped around. 

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

I just listened to episode 350 and enjoyed the discussion about sacrificing comfort for stability, specifically it was mentioned buying large SFH and converting to have roommates.This is an interesting concept to me as a house hack but I’m left a little confused, is it really that simple or isn’t there some zoning ordinances to prevent putting multi families in houses like that?

No mention that corporate interests coming into the real estate market as buyers when prices are depressed helps owners and helps prevent values from falling further.

What follows is the FHA rules for these issues:"To prevent circumvention of the restrictions on making FHA-insured mortgages to investors, FHA generally will not insure more than one principal residence mortgage for any borrower."

Maybe claim preventive maitenance? 

Thus because the loan has been in existence less than a year should not preclude or prevent a removal request from being granted as not having the required good payment history.  

If the tenant did it because they were locked out, a keypad lock would prevent that since it would be a code to get inside and not a key.