After living there 2 years, you can sell tax free on the gains. 

Some are glorified fee takers and any cash flow or equity return on the property is icing on the cake.I like it more when the fee is just a small component of the deal and the syndicator wins more when their passive investors do on the back end.

Any suggestions on how to legally put Damage Deposits into a CD to gain interest? 

New investors tend to stress out for years about their first deal or two, and then when it comes to the most important peice of the puzzle regarding how their property will perform and how passive their experience will be, they get lazy and don't develop a process for screening. 

I purchase multifamily all the time and when I walk properties, I always inquire with the tenants to gain an understanding of the property.

After looking at hundreds of thousands of dollars in suspended passive losses, I'm planning to provide substantial services on my next house hack.

I am currently active duty military and looking for investment options for the property to create a passive income and build wealth.

I have always been weary about investing in this area even though on paper it sounds like there is a lot of cashflow to be gained!

I ended up selling it 4 years later for a huge gain after several developers came in and built up the rest of the street. 

While it may only cash flow a set amount each month, don't forget that the principal on your mortgage is also being paid down and (in the long term) the value of the complex is going up.Are you able to invest that money elsewhere (factoring in cap gains or 1031) and do better?