Tenant caused damage is their responsibility.

But its all about risk.If there is a lapse in insurance, that means any potential damage wasn't claimed, and therefore isn't on the records (there is a record of any and all insurance claims you have, no matter what company you have it with) and may have not even been completed.  

Remove the carpet and assess the damage.

Weather Patch just applied on roof around all fixtures, no other damage observed.

So the thought arises, who is worse in terms of damaging the property.

. -11,250 Sq ft lot-2130 Sq ft building-built in 1946-1 green house he made into a 2 story building the other green house has broken glass and hail damage.

Can't threaten to damage their credit!

I have a few SFHs and a few apartments that have never had a vacancy; never had an eviction; never had any damage done by tenants; and never had any major maintenance.

Assuming there would be no physical damage (burns in carpet, etc.) there is still the smell of smoke in the unit which can obviously deter any future renters.

It appears to me that there is a good chance to make money but the risk of house damage and outright destruciton of the home exists.