This needs to be highlighted in the lease and acknowledged by them.Security Deposits: You can’t use their security deposit for routine cleaning, but if they leave things in bad shape beyond normal wear and tear, it’s fair game to deduct cleaning costs.I’d start by having a straightforward talk with them about the importance of keeping things clean for health reasons and property preservation.

Renovated with cosmetic updates for immediate rental income, it offers strong cash flow while preparing for more extensive repairs and the addition of an ADU.

Spoiler alert: These are a routine occurrence with emotional 18-22 year olds.Thats no Joke... 

(mostly cosmetics), what price range that it must fall into at that condition (for the purchase price) and/or what the maximum LTC to ARV must be (in other words the purchase & rehab numbers must not exceed 65-70% of the ARV, the lower the percentage of ARV the better).

Situated on a large lot in a thriving Morganton market, it features immediate rental income potential with cosmetic updates already completed.

As for the way that they are living, you should be doing routine inspections and then hold them accountable.

I added value to the deal by initiating cosmetic repairs to make the units rent-ready while preparing for more extensive renovations.

Not 2-hour morning routines or more education/inspiration/motivation/etc.

If you get a high-paying tenant in there, you can increase your odds of increasing the home's value.So you’d prioritize cosmetics upgrades, or a whole remodel, rather than “new construction”?

I'd personally be a bit more conservative with the underwriting and make sure to see what the carrying costs could potential get to especially if this is a bigger renovation and not just cosmetic.