Like a water pipe bursting and damaging all of their belongings.

Should their be a signed document or is the honor system in use when it comes to this?

For at least the first year, I plan to be an owner-occupant, manage the property and put the proceeds directly back into proactive improvements, such as replacing a 50 year old water heater (not joking).

Otherwise, stay small and carry the water your income allows as an individual instead of as a business.

Any advice on on a book keeping system would be appreciated also.

You need to come up with a system that works well for you, including accounting/bookkeeping.

This is an entirely new system with a completely new codebase.

It needed a furnace heater installed as it didn't have one or the venting needed for it, the water heater was in the kitchen not separated by any walls, a giant tree was growing into the foundation causing it to be very bumpy and cracked, about 1/4 of the INSIDE of the house was stuccoed, and a lot of the house wan't up to code.So, it was basically a brand new house needing to be built.

There are still a lot of people under water on their mortgages.

She also said because of the leak there was water damage to the floor.