A lot of the maintenance you are going to experience with your rentals is just damage and wear from things being used.  

Your title insurance (depending on the state and type of policy you purchase) will generally cover you if for example the title company missed finding a lien when they did their search, and they will generally cover you to the extent of your damages...

I think I have two choices to accelerate growth: 1) cash out refi on my positive cash flow homes or 2) borrow money to acquire homes that have termite damage and missing air conditioners.  

I have seen some bad stories about leasing coin op machines, you might try searching for threads about it here on BP.If you manage your rental yourself or you have a PM you trust, it is easy to collect the coins every month or so.If your rental is in a questionable or hidden area, I would recommend getting the coin vault guards installed to prevent damage from tampering.

The last photo of the gray top is 12' long x 4' wide and has a built in heating element that is controlled by a thermostat.

Also is there any water damage? 

NOTE this is more than the $135k the property is worth but she would be collecting every penny and more over the term of the note.With that being said those are 2 valid options and they can be played with or tweaked to provide the perfect deal.For Example:If she comes back and says the 18k has to be paid off and is not willing to risk her credit being damaged and trust you to pay the mortgage on time go with Option 1.If she says she wants to increase her income by $500 per month and that $300 and change will not cut it.  

I was wondering what types of damage caused by tenants justify keeping their security deposit. 

I'm willing to repair a porcelain crack over risking an acrylic crack and water damage.

LCC disputed the content of the report and sued Krowne and ml-implode for libel, claiming that LCC was damaged by the post itself as well as by the implication that the company had "imploded"… (More on their website site)…