If there's anything you learn in the business its that every time you tear into a wall you have a good chance of finding an ugly surprise.

I quote:PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the property until the earlier of closing or occupancy of buyer in materially the same condition as of the date of acceptance of this offer, except for ordinary wear and tear.

The more I think about it the more it sounds like it's going to be a tear-down

If it just sits on this small parcel for the building in a residential area on that slope you can do much better.I haven't even gotten into the age of the building.If it's really old you could have to tear up everything to redo the water main into the building.

You could bring in a money partner to stabilize but getting something is better than losing it and getting nothing.You could also look at selling to a land holder or a developer for cash to tear it down and rebuild something better.You can also approach your bank and explain your repair situation and see if they will help with the repairs to protect from a default and huge loss.Some small banks will do this sometimes.To the big banks for the most part you are just a number and a loan that has to be worked through.A HML loan will eat you up and I don't recommend that.A regular lender will not touch a property like that.

Serious wear and tear on the unit is a given, even if the tenant is good about cleanliness and upkeep.

I have a statement on my lease that says: "The cost for repairs and cleaning necessary to restore property to pre-occupancy condition (beyond normal wear and tear) will be deducted from the security deposit at the rate of $50 per hour plus the cost of materials."

Pretty much the only thing we haven't done is tear down and rebuild or build from scratch.The minimum we tend to do is a complete interior cosmetic renovation, which includes all new paint, flooring, cabinets/vanities, countertops, appliances, lighting fixtures, plumbing fixtures, registers/switches/outlets, etc.

You will need to get a large deposit as you will be renting to large families and they will tear the place up for you.

My concern is if he moves out and I have no prior knowledge of the apartment prior to him moving in a year ago how can I legally keep any of his deposit if he moves to cover wear and tear?