Well, apart from “if you give me $3000.”Luckily this is a co-living model through PadSplit so I have some income coming in.

Additionally, do you have any other ideas or strategies that might help achieve his goals without incurring a tax liability?

There are BLOC's Business Lines of Credit which will allow collateralization of residential income properties.

In addition cash flow is taxed annually.  

Here's the deal: You don't need to withdraw and return the current security deposit just to collect the additional $100.

Section 8 is best used as a risk mitigation tool for properties in super low income, high crime areas.

@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

My best understanding from talking to reps is they have one local employee (in addition to vendors like cleaners, landscapers...) per 10 listings/properties. 

I wasn't aware that they brought on additional debt to fund everything.

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.