I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM?

No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..

Deposits will not be returned (full or partial) until all tenants move out.If Tenant A didn’t come to you to get part of the deposit back they may have gone to tenant B, but they most likely walked away from it and I feel it is between tenant A and B to sort it out.Personally I would return it to tenant B, the active tenant in the current active contract.

The market in Racine is much different than Kenosha and we have been having a hard time getting quality tenant applicants.

does it make sense to just liquidate and get what you can get and put it behind you. 

This not only looks nice but also lasts forever.2.

Dont get me wrong there are plenty of heavy hitters that just scan the site and dont really post. 

Unfortunately, we get too many calls from clients that got the run around, poor communication and service and/or were the victims of a "bait and switch". 

The seller said this is in a gentrified area so there's potential to rehab this effectively and get a high payout as shown in the last comp.

Can you get a great deal on the purchase?