Speaking of education, I also serve as Adjunct Assistant Professor in Columbia University's Master of Science in Real Estate Development program, teaching real estate finance.

On our way home he downloaded the game on my IPad and was teaching my 8 year old daughter about stocks, assets, liabilities and all things "Rich Dad"..  

The real estate attorneys I've cold-researched don't exactly teach the process, what to expect or what their costs are. 

Take notes...he is teaching you how to wholesale.     

It has taught and (still is) teaching me about the complexities involved.

Yet, food for thought, if it's the latter scenario, the offer to allow the buyer to select paint colors and finishes, etc. could be be valuable.

Coming here and telling us is great and hopefully teaches others on this site what not to do but it doesn't help the noobs in the real world.

There are a few paths we teach, one is like William said which is sending out mail to get deals.

The portion of your homeowner's insurance attributable to the rental unit can be deducted.Building a basement apartment can provide valuable tax deductions if you rent it out.

Thank you both for your valuable input.Yes, they do have renters insurance which is part of our lease requirement.I believe they wanted something for damage to their rug and TV damage.Here is what my thoughts are:As @Jeff V. mentioned, I agree that it is mechanical problem and it should not be our responsibility other than removing water. otherwise there will be sense of entitlement going forwardAt same time they are nice people and I do want longer relation with them.So I am thinking that I should give them option that I can use shop vac to remove some water from rug and loan them my space heater for some time , so they can resuse rug.Sounds reasonable?