You may have better luck working with a wholesaler if you want some really beat up/distressed homes.

So, owning fewer 'A' properties or more 'C' and 'D' properties is a question to reckon with.High-end properties tend to increase in value faster than lower-end properties and many people use this business model to get rich.

Also, before you try to find some exotic ways to beat your capital gains, make sure you do have those gains.

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule:The HomeStyle program has a maximum 4 draw process.The initial draw can be up to 50% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information:Ø Signed Draw Request by borrower and contractorØ Signed All Bills Paid AffidavitØ GMG review and approve the draw request and will release funds for disbursementØ A check will be issued in the name of the borrower and contractor and delivered to borrower via USPSØ An inspection of work to date will be performed at 50% completeFinal Draw Information:Ø Signed Draw RequestØ Final inspection/Completion Certificate will be required for release of final fundsØ A Title Update showing property free from lien or encumbranceØ General Contractor’s Lien Waiver AffidavitØ Affidavit of Completion GR will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns:Changes to the initial plan are not permitted unless prior approval by Guaranteed Rate.

Not to mention MFH 2-4 units appreciate much faster than Townhomes in general.  

Seems like they really beat the place up...I would 100% deducted from the security deposit but from what I'm seeing and I don't know what your rental amount is it probably is the whole amount. 

I have found that the returns match or beat the returns from active investing and it's easy to figure out why - I am hiring professional asset managers to manage all aspects of my investment. 

An "investor-friendly" lender is one who understands real estate investors' needs, offering quick and flexible financing options to help you close deals faster and grow your portfolio.

We actually spun out our PM work to be public facing and we're able to provide repairs to other owners at a much better price and with a much faster turn around than most other companies that are looking more a SFR remodels.

A well-qualified homebuyer familiar with his local market should beat the pants off of an institutional investor any day of the week.