Unfortunately termite damage can extend into the in areas that are not readily accessible (covered by sheet rock, paneling and such).

. $500/month rent with no mortgage would mean about $150/mo for adequate insurance plus taxes.That leaves $350/mo to cover PM, which will be hard to find a good one in that kind of neighborhood, then there's vacancy cost, tenant damage, capex like roof and heater, plumbing repairs.It's good that you are looking for other ways to make a deal work, but I would pass on this one.

I have approved these types of tenants in the past and though most are solid some are careless with my rentals and cause more wear and tear or damage than I am comfortable with.

Are you able to inspect it to see if you "tenant" is still their and not damaging the place?

As for income, instead of $800 per month for a 3 bedroom you can rent it out at $350 per bed.The downside is you have more turnover, the students do more damage than normal, they have different expectations of amenities, and it's harder to get loans for large complexes.

The roof was fixed in a temporary manner to prevent further damage and active mold.

The welcome letter should include key elements such as:How and where to pay rentContact information for property manager and leasing agentsProperty rules and regulationsImportant phone numbersYour system for handling maintenance requestsIt’s always a good idea to include a positive comment about good working relationships.

With regular inspections, I'm not as worried about using all of the security deposit for damage, but I have had the "by the way, I'm moving and I'm using my security deposit as last month's rent" situation thrown at me, despite the lease agreement stating the contrary.As a result, I have also gone to collecting last month's rent in addition to a security deposit upon move-in.

If you are working with a more proactive PM, you probably don't need to be as concerned, but tenants should know that they are being watched and will be held accountable for damages and/or other lease compliance issues.

Once you've found a replacement tenant, you should terminate the existing lease with the current tenant, do a walk-through, return the security deposit (minus any deductions for damage as appropriate), and then sign a new lease with the new tenant and collect a new security deposit.