We found 2 leaks that caused moisture behind the walls, leading to mold mitigation and an insurance claim. 

It's a little confusing when this duplex was built....2007 or 1950, and it makes a difference because housing built in the last 15 years is exempt from the new AB1482 bill (rent cap/just cause law). 

I personally don't care as long as they are not violating the lease or causing a disturbance.If there is evidence they are smoking inside, I will give them a written warning.

Here's how I explain this to Buyer's.There are three main things that could cause you to default on the loan (which would likely make it less profitable for the lender).1) You don't pay your taxes, you get a tax lien on your property, you foreclose, the lender loses money.2) You have significant damage to your property, in theory you might not have the cash on hand to fix it (thus insurance), and you can't stay in the property, maybe stop paying your payments, you foreclose, the lender loses money.3) You don't pay your mortgage because of a life event that changes your income (thus why lenders underwrite you with stricter standards than pre 2008), you foreclose, the lender loses money.Even if you can poke some holes in my reasons above, if you're curious why something is a certain way, follow the money.

Is there something I am not thinking about that could cause issues for myself or father in law with taxes or any other areas of concern?

Apparently last spring, there was a freeze and some of the pipes burst causing significant water damage.

This new world with interest rates in the 7-8% range is causing most of us to reassess our goals about where to buy, when to buy and what to buy.  

Additionally, if a wholesale deal is not sold quickly enough or if there are unforeseen costs associated with repairs and maintenance on the property, this can cause issues for investors who may not be able to cover all of their expenses.

I do think you can train tenants to push the limits every month which only causes you more grief.

I am wondering if there is a centralized place that hosts all checklists for every part of the real estate investing process.For example: During the buying process, following this checklist to ensure you're following every needed step and also check for these specific things which can lead to a lower valued home (flood zone) or cause issues in the future.