Keep the deposit towards additional rent if allowed by law and wish them the best of luck solving their problems. 

If the building is currently recognized as a single family residence,  then you are changing use and presumably will need to sprinkler the building and satisfy other fire rating and STC rating requirements not to mention the added costs of having to run mechanicals for multiple units, multiple kitchens, additional bathrooms etc.  

If you have any additional tips or resources on setting this up or ways to avoid the common pitfalls in this field, I’d be grateful to hear them.Thank you for offering to share a step-by-step blueprint—it’s exactly the kind of actionable guidance I’m looking for to make sure I approach wholesaling the right way!

I always ask within 24 hours of check-in to see if everything is okay-- but I think it takes people time to move in and see if anything additional is needed.

Most municipalities have different mix-use categories which dictate the precise commercial use that's allowed.A few additional observations on mix-use assets and how I approach them (1) they are generally more difficult to finance than multi-family assets so expect lower leverage terms even if the property performs just as well if not better than a multi-family property and therefore price this into your acquisition (2) I focus on mix-use assets where at least 80% of the income is generated through the residential component.

For a business doing fix and flips, I can't see how any tax savings can outweigh the additional leverages and costs of vesting this way.Cheers!

I know from experience financing additional tiny homes (not sure if you're looking to do this) can be difficult without having someone that has previous ground-up construction experience.

Additionally, I'm interested in understanding typical STR fees to help estimate cash flow.If anyone is willing to share their experiences or offer advice, I would greatly appreciate it.

And still, for others, the answer may be to relocate the funds to another market and purchase additional properties. 

We'd be interested in taking a look and providing an additional opinion to the offers you may be getting.