I am not an insurance expert, and don't claim to be.  

But at the same breath unit 2 is also stated that this is “common pipe “ , so he’s is indirectly hinting this can be claimed under the HOA issue

For example, I often see Buyers purchase property thinking there is a $1,000 deposit but then the tenant claims it was actually $2,000 because they paid the last month's rent.

She also claims that I allowed her to use the other bedroom as an office, which I didn't.

On real estate you claim depreciation which shelters some of your income from being taxed. 

Hopefully there were no property claims that would be much worse

Major factors effecting every real estate market include unemployment and job growth.In Texas, between March 15 to August 8th, a total of of 3.2 million jobless claims were reported with over 300,000 in one week of April alone.For reference, weekly claims peaked at between 50,000 and 75,000 during the most recent economic downturns — 2017 Hurricane Harvey and 2008 Great Recession respectively. (2)Austin’s March job growth compared to March 2019 was up 2.5%, though signs of increased unemployment were on the horizon as seasonally adjusted unemployment in March was 3.4%, and up from 2.5% in February.

If the HELOC is only used for purchasing rental properties, you should be able to claim that interest as a deduction against your rental property.

He saved money by claiming a business tax deduction for himself, and at the same time got me off on the right foot towards retirement.Today I am a successful investor with multiple properties of my own.  

Most homeowners benefit from purchase in one form as they claim the Federal Tax Credit, currently 26%.