It's hard to answer outright without knowing a few more things about you - but I believe both VA and FHA require you to live in the properties which may become a problem if you need to do extensive repairs.

How much cash are you looking to pull out and what do you expect the value to be after repair work is completed?

You will need some finances saved up, so you can pay for any repairs and fixes that the units may need.

The first two years I had higher repairs and vacancy than expected, but it was bad luck and now things are running smoothly.Last year, I had a fire in one house with a lot of damage.

So know your own numbers and never depend on wholesalers to provide accurate repair costs or ARVs. 

Know your comps, know your marketI bought the house for $500k knowing that I can put $50k of work into it and get an ARV (after repair value) of $600k based on comps that sold in the same neighborhood– I’m willing to put in the work to make this happen and can take my time since it’ll be my primary residence.As a house-hacker, you’re likely choosing a property based on one of your needs (close to work, near family, etc.).

It is now 6/21/24 and I am still going back and forth with my property management about the security deposit and repairs.

Most require skin in the game on deals and work like this:Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 Max Loan: 65-70% of After Repair Value(ARV) 100% Rehab Financing Available (Most Deals require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

What is the after repair value?

@Marc ShinMake sure to double whatever they tell you it will cost and take 2x as long and then have someone to come repair all the shoddy work that was done.Hopefully you have working bathrooms otherwise you may have some surprises hidden behind your walls