The tenant may also withhold rent, but in response, the landlord may sue the tenant for non-payment of rent.

If you could provide the ARV of these properties, along with the respective monthly fees associated with holding each property then we'd be getting closer to which looks like a more favorable rental.

Yes- a few more details. 3 year term10k -49k = 12% return50K -99k = 13% > 100k = 14% I am a novice when in comes to note investing and the appeal of this approach is that it offers what I consider a reasonable to good return and avoids some of the typical pitfalls that can cause hiccups with holding notes long term (death, divorce, etc).Am I thinking correctly about this?

Attorney should have been contacted long,long ago on this one.It is true with section 8 they inspect units and if problems need fixing they can freeze or with hold payment until unit comes into compliance.At this point an attorney needs to look at this mess and see what is going on.No legal advice given.

I say this because I did it and:1) I got the money back that they were withholding.

Is the pet deposit refundable or I can withhold the pet deposit?

Howdy @Kaydn JensenIn addition to what has been stated I re-evaluate the condition of my properties annually to determine if my CapEx and/or Maintenance withholdings need adjusting.

Although it seems there are lots of details you may be withholding, I won't hold it against you.

They will render such accounting and bookkeeping assistance as determined necessary for the preparation of the income tax returns.In October of 2019, I asked for a review of my tax situation to make sure I was still on track with my federal and state withholdings, because I wanted to make sure I wasn't going to owe money as a result of cashing out my 401K. 

I am currently uncomfortable with holding a lot of cash, I feel that per dollar purchasing power is dwindling down by the day.