It was a mom and pop managed property that presented some operational deficiencies and rents that were 10% below market.

The tenants have been officially removed from the property for two weeks but we have not received an itemized list deficiencies from our property manager necessary for the security deposit resolution. 

The contingency reserve may be released only if required, necessary, and unforeseen repairs or deficiencies are discovered during the renovation.

Non-recourse just means that if there is a deficiency after the foreclosure, they won't come after for the deficiency. 

A GABA deficiency which can lead to insomnia and restless nights.

Maryland is a deficiency state so, the lender might be able to come back after the estate for any deficiency (might).

If utilities aren't/can't be turned on that would limit what could be inspected and if you are doing such a large renovation then you are already planning to replace most of what would be deficient anyways.

If you buy with leverage it is someone else's money at risk. true in one sense the other side of that coin the other persons money if you cant make a go of it.. ( which many dont becasue they are too highly leveraged and lack sufficient liquid reserves)  your credit gets trashed.. and depending on the state if it really gets bad the bank can sue for a deficiency and all these loans are in personal names or if in an LLC there is a personal guarantee..

I'm working on a couple of four plexs to tackle the experience deficiency of the loan approval process.

I'm not an attorney, of course, but my best understanding is the lowest form of deed conveyance - the quitclaim deed - is best used to clear up title deficiencies, not convey ownership.