We are looking at an old Victorian that has been hacked into 4 apartment units, but we would want to restore it into a SFH.  

These homes are like vintage automobiles, you restore them to their original state to multiple their value. 

Are they willing to repair and restore?

House was gutted & in process of being restored.

You always need utilities for cleaning between tenants.Typically, utilities charge a much higher fee to restore service after a shutoff than they do to switch service from a tenant's name to yours, which may be free, and then from your name to the new tenant's name.One further thing I've done: The gas utility charges $19 to switch service from the old tenant to my account and another $19 to switch to the new tenant.

But the attraction to sure deposit is you (hopefully) get the money from the bond and can quickly restore the unit to pre-damages condition and get it rented and not have to worry about pursing collection, going to court, but if what I’ve read and have been told about sure deposit is true, if Assurant (I believe) can’t pay the bond, what good is having it?

The owner can require the property to be restored to its original condition after move-out.Be careful in your screening process to not do or say something that could be considered discrimination against a protected class.

You can also have them agree, that when they move out, to restore any tub cuts that you make to accomodate their requests.

But if an investment requires that you massage the numbers, make assumptions about rent increases, or under-budget the rehab, walk away and wait for the next one.Best of luck!

Yep, restore energy independence and recession goes bye bye!