Here are the numbersARV 140kRepair Cost 60kPurchase Price 15k The previous rehab went over top of the lath and plaster with drywall so there was no damage to the structure.

If the tenant fails to perform, the landlord can terminate the agreement and keep the deposit as damages and move on finding another tenantIf you accept a security deposit and /or execute a lease for a future date and the tenant fails to perform at move in, your only option is to evict as there is a lease in place.

This may cause your NOI to drop and negatively affecting your CAP rate.

If a fire caused any injuries you may find yourself in a world of hurt.

You now have credit for unexpected expenses that you may not have the cash for such as roof damage, hvac replacement, leaks etc. 

Evictions not only cost a lot of money to do, but you can have months of lost rent and property damages to deal with also.  

Hi Eric,Without being able to prove which tenant(s) is causing the problem you have limited options.

Watch out cause now i feel like SUPER WOMAN!!!

The outside has completely no siding on it and some of the wood looks damaged so it would need to be fixed.

Considering the next step down on 90% of renters insurance policies is $100,000 they are just trying to make sure all of your expenses are covered in the event they are liable for the damage to your property.