So now im left we the wrong insurance coverage and $5000 in losses. 

you can also look into the NACA purchase program you can get a home with No down payment, no closing cost, and no fees They will make you jump through hoops for this but the end result is well worth it 

This coverage is meant to cover increased costs when recovering from a loss.

Looking at your competition, what is their physical vacancy, their turnover (related, but not the same), evictions/bad debt, loss to rent (how many units are not renting at market), and concessions ("1-month free on annual lease).  

**A good piece of advice is to go back to company that you had the original claims (tornado loss) with and ask them to provide you "loss runs" this will be an official manuscript (sounds fancy, it's not) from the company that details the loss including the amount that was paid out.

Is it through Homesteps or a similar program?

Any one has any experience with the HUD-VASH program in the Bay Area?

You could actually see a loss from commissions/selling expenses unless it appreciates quickly between date of death and the sale day.2. that is up to you.

You will also want a policy that has business income protection, which means if the entire building were to burn down your loss of income would be replaced during the rebuilding and re-renting process.

Best thing to do is evict immediately upon non-payment, keep their security deposit to cover most of the losses, swallow your pride and eat the rest.