So the money you paid is gone and you have a very expensive lesson.When someone buys something at such a great discount, then its easy for the court to say, wow, something so wrong and this is not an innocent buyer, then they do not feel bad about reversing the fraudulent sell.Someone not opening probate when someone dies is why there are homes that someone 'inherited' from a few generations back, but its still owned on record by grandma who died 50 years ago. 

You borrow the $20k downpayment plus $5k in closing costs and $5k in rehab costs from your HELOC also at 6% (note $5k in rehab costs in nothing so the house better be newer and in great shape).Let's say you rent the property out for $1000/month and using the 50% rule you have $500 in expenses each month.Your mortgage payment will be $480/month.

I'm now wondering if its worth my time and expense to even file the claim if they do in fact file for bankruptcy.  

As CEO you don't want to worry about the $15 expenses, but you need to understand when and how you are to be contacted for big items. 

The property basis will determine your depreciation expense - one of the most important tax advantages of a buy and hold investor.

It could just a joist issue which isn't an expensive fix or something to worry about.Check the ceiling for brown spots as sign of a current or prior leaking room.Window units in house means there is an HVAC issue no matter the reason given by the owner. 

You just need a good system to track your expenses. that should be enough no matter where you pay the expenses with. 

I have told them  I'll sue for hotel bills, travel and medical expenses as well as damaged property and floors... but I am holding off ONLY as I know these expenses and court costs will be paid for by my neighbours.The HOA board have finally offered $1700 for a $6000 claim in October 2018. 

insurance estimated to be around $25 a monthRepairs estimated at $100 an monthCap X I put at $200 a monthand I included property management just in case i decide to go that route at $170 a month.Zillow says the mortgage would be about $188 a month That would put a total of $1003 a month in expenses and 1200 a month in rentcash flow would be $197 a month if all the calculations make sense.total cash needed would be $11,880. 

Some good advice if I may is to have a really good insurance policy that covers rental loss, and 3-6 months of full expenses in each of your rentals bank account.