A local bank is MUCH less likely to forgive the deficiency, and much more willing to foreclose and take their chances on an REO sale.

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

That to is an imposibility to perform and the reason guarantors are used and accepted, to cover deficiences of an applicant regardless of the reason they can't meet some requirement.I made that a 5 years as a point, 3 years of acceptable credit can be tough to meet by any tenant.

Without having reviewed the documents I assume you guarantees were to guarantee any deficiency from the note.

. -------------------------------------------------- In the future, when negotiating in Florida, or in states where their is a deficiency judgment allowed, the bad debt market will net lenders more due to the judgment.

She may not have the same interest, but does she compliment your deficiencies?

One point to keep in mind is there are about 12 states that are non recourse meaning bank cannot go after borrower for a deficiency judgement

Perhaps the deficiency idea is a little less understood but it is a real and largely present issue as well.  

If the tenant has a pass due balance and leaves or is evicted, it is the responsibility of the landlord to pay the deficiency if they want to rent out the property again.

a big thing to keep in mind is the census data for your area.. duplexes here are running about 350 (sometimes more) I was told not to even blink at a duplex over 300 (given rent for this area) but the biggest thing I learned is that even at $1500 per month in rent (there is already an abundance of units at that rate) and that the real deficient in the area is having units under 800 - is that possible for this area?