Hi @Cameron Tope thanks for been the first one to respond to this post.With Single Family Homes I use the gross yield as rule of thumb, its not accurate but when you get to know an area and the possible expenses like: Tax, Insurance, Property Management, etc its helpful.

@Joe CandelariaI agree with Cameron that the Solo 401k is the best retirement account one can have, but there may be some issues with the prohibited transaction rules with what you have planned with retirement accounts.

That being said, IF exactly what was reported is what happened, varying state laws aside, I would not view what was ALLEGEDLY done as ethical.

What @Cameron Tope said. 

@Ryan Cameron hi Ryan, are you an agent also?

You can search these forums for how to utilize.There may be other ways to acquire of carve-out an interest.I cannot imagine why you haven't made the effort to call or knock the alleged residence of your target (owner).

@Ryan Cameron, Brewerytown seems to be getting a lot of action as well.

Pretty much agree with Cameron.

Cameron

They would have slim to no chance of prevailing in small claims court if they decided to pursue it, provided you have the photos of the damage and the receipt/invoice showing you actually paid for the repair as opposed to a case where you just tried to keep their money for some alleged damage.Here's some more reading on the subject if you're interested: http://www.dca.ca.gov/publications/landlordbook/sec-deposit.shtml.Good luck.