I would definitely take this out of the tenant's security deposit, since it's his arrest that ultimately caused the damage.

@Ron Kelley Find out what the policy is for tenant security deposits.

Am I stuffing it in coffee cans and putting on the shelf with my 'prepper' supplies?

Diego, if you can, I would go see a Legal Aid attorney and see if they can help you recover your Security Deposit based on tenant/landlord law in your State.

I'll supply paint.

Lots of good shops for buying craft beer supplies if you like to brew also.

I do have his full security deposit of $630 that was transferred to me from the previous owner.This is my first rodeo and I'm not sure how to proceed.

Be sure you get credit for the security deposit at/before you close.You're right on the lease.

Make sure the cash flow is secure with high quality tenants.Eliminate all personal debts.Secure your personal income streams (work / education / skill development) for yourself and your family.Leave yourself a cash emergency fund that can cover a year's worth of all personal and real estate expenses.These first few properties should be completely paid off.

Most administrators will dump RE converting to securities for better asset management