Bad news you may also have to cover your own commissions. 

Now the deposit covers up front costs , some materials , overhead and PROFIT .

You will need to cover perc tests if needed for each lot and then hire a surveyor to draft the ANR plan for submission to the town, just treat wetlands as sacred Indian burial ground - stay away from them and your costs will be very low.  

I do not know much about San Antonio market so will cover pros/cons of San DiegoCons- price of entry.  

Each lot is assessed with the taxes to cover such cost and they are paid monthly for the first 15 (give or take) years as part of your mortgage payment.

At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu.

The projected rental income wouldn't cover the mortgage and HOA at this time.

Take the toilet out without damaging it, put a sanitary cover over waste hole, put toilet on shower floor.

With the situation you're going through, your first thought was likely "I'll raise the rents to cover this." 

New pictures, updated amenities etc can help raise your rankings.