This structure gives the investor a chance to get out of the ARM with little or no penalties after year 2 (1% is almost negligible in most scenarios) and essentially gives a 3 year window to refi before any adjustments ever occur. 

For example, a DSCR of 1.25x would occur if the property earns $1,250 per month in rent and has $1,000 in PITIA (expense – or principal + interest + taxes + insurance + association dues).

This has occurred two summers in a row and I need a better diagnosis of the issue.

If so, you may have coverage (depending on what occured)

I did not realize that could occur in an eviction case. 

Even though you can not charge an extra security deposit, pet rent or fee for the animal, you certainly can charge for damages as they occur.  

The tenants did not want this to occur during the weekends since that's when they get the most business, I spoke with he contractor and we agreed it would be done during the week.

@Wayne Brooks the leak occurs at 40yr old overflow and tub drain.  

There have been a lot of recent cases of scenarios where lawsuits occurred and agents are held liable.

However, after demo, we discovered that breakage occurred before the meter.