I am also of the belief that if a property cannot produce $1500-2000+ in rent per month, you're just going to have a hard time covering capex.

. - In our Georgia home, when it was new the warranty would have covered settling up to 1/4 inch.

Can you rent it and get your PITI covered all in with the rehab and have some cash flow?

After deducting your payoff, you've only got a little left over which would go toward covering refi costs (and you'd likely come up a bit short).

@Brandon Eike, on an investment property, most lenders will max out their loan at 75% LTV, which doesn't cover transaction costs, which are usually 5%-8% of the purchase price.

Technically, those sleeping over 12 built after 2016 are putting themselves in a legally liable situation if something happens as insurance companies may not cover them.

I would also ask about your area specifically about how it is covered.

If it wasn't, then you should consider covering the cost until you can correct it in your next lease.

That way if you have vacancy in one unit, you still have the other that can at least cover some or all of your expenses. 

If the deposit does not cover the charges, then you should consider whether you want to pursue collecting the unpaid balance or write it off.You did the right thing, and the tenant's behavior proves you were right.