When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or to refund to the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account that is specifically designated for future investments.

Quote from @Jenny Banner: Good Afternoon,I have flipped a few houses up in Connecticut.

But from a moral & ethical perspective, you may want to decide at some point to just eat it and accept write it off as cost of doing business.

They were able to do a reverse 1031 exchange because they had the funds up front to execute the replacement property first, then sell the relinquished property.

When it's sold it will be taxed as capital gains tax and may also have some unrecaptured depreciation which is capped at 25% and  recaptured depreciation as well which can be up to your ordinary income tax rate.

@Allie Dattilio unfortunately I didn't end up investing in Cumberland.

I see no one replied here, did you end up working with them? 

How much is the rehab going to cost, what's the ARV going to be, and how much will the property rent for?

(im told they are not the same)Hopefully that clears up any gaps in my introduction Awesome, that helps!

Still boils down to will the developers go for it and will the market receive them well.Portland came up with some really high density rules to allow these little tiny home villages and the planners and city was so proud and a few developers tried them but the market ( buyers) dont like them and the projects have failed so no one is building them anymore..