If they ban it, then court challenges are likely and how it will settle is to be seen. 

Several owners have posted here on BP, that they made the mistake of paying the CFK funds to the nonpaying tenant, usually duped because that tenant claimed they needed the money to move, and then the tenant did NOT move out:(So, our CFK process requires them to sign acknowledgement forms about the process, which we've actually been able to use in court against the tenant when they don't follow thru on the process.SECURITY: always a challenge in Class C & D areas!

Hi Nora,Your county should have a process either with the court or sheriff.

2)it sounds like you’re sure they aren’t required and your lease will stand up if it ends up in court a year or two from now?

It turns out the boyfriend has been charge with abusive behavior and has been issued a restraining order by the courts that essentially evicted from the home.Due to the fact they both did not strong credit, I had initially taken 2 months rent from them as security deposit, with the understanding that 1 month would be returned at end of 1st year lease if they decided to renew. 

House prices (unless you are talking very expensive homes or apartment complexes) are unlikely to drop $100K.

Let's say this is a 400 unit apartment complex.  

Hi Justin, you have a complex financial situation, and your questions touch on detailed aspects of how capital gains and 1031 exchanges are treated in mortgage underwriting. 

@Alf Holst I know a property owner who does this for one of their larger apartment complexes, so yes some people do it

Thank you in advance as we all need all the help we can get on the complex world of the tax code.