I'm currently burning about $50-55k per year to take care of my family. 

Overuse of electric can result if the tenant is not using energy efficient lights and appliances, keeping the lights on unnecessarily, using electric heat on with windows open, etc.

If you had a burned out light bulb and replaced it, is it still a "defect"?

The biggest one that will burn you bad is giving any kind of financial kickback, can get you banned from sec8 program for life and or face federal fraud charges.

Had a fellow investor attempt to burn if off with one of those propane weed torches.

I did part way with the contractors electrician as he was using salvaged parts to complete the work and initially installed a breaker box on burned studs - to the point the whole box moved .

Too many newbies focus on the cheapest PMC and get burned and leave real estate.Also, micro manage the PMC a BIT for the first few months so you learn about tenants and managing.

This approach helps to build trust, and often results to them coming back to you months later (when the time is right, or after they got burned by some other shady operator). 

Finally, you can offer to put in more time and energy for a deal while a partner puts up more funds.  

One more thing to consider, when you believe your unit is free of bedbugs and before you re rent it out, I use Burns Pest Elimination, they have trained dogs that are trained to sniff out bedbugs.