If you tried to withhold the deposit the tenant may decide to press their case in course and you would most likely have a difficult time convincing a judge that these issues are the tenants responsibility... especially since you don't have evidence of the condition before move in.Anytime I am purchasing a property where I am inheriting tenants I always assume that I will be returning the entire deposit to the tenant and I build that into my numbers.

Most 'C' tenants wouldn't want to move into a hoity-toity 'hood where the 'karens' are going to whine about the smell of weed all the time.In my area, one-bedrooms in 'C,C-,D+' neighborhoods are affordable to a full-time minimum wage worker.The 'A/B' properties don't like all the pitties.Many, many, many  low-income workers hate, loathe, and despise doubling up because they've been ripped off by 'room mates' too many times.I our case in particular, we finish out our 'C/D' neighborhood properties to a pretty high standard AND work with tenants having temporary cash flow problems.

I represent two different buyers in that exact case in Los Angeles.

I had been thinking (possibly hoping for) 50% ($6k or $7K of rent), but that will clearly not be the case.  In

Im down to get into it but I don't know what will be the case in 2-3 years. 

The US began under building housing of all types around 2000 creating the housing supply shortage. sorry dont buy that one.. there was a HUGE glut of unsold new construction that took years to clear off the books from the GFCyou have access to the economic research. not as if you need a special account to search academic research as was the case in the 2000s in addition to the BLS, the Fed, etc. the US began under building around 2000 compared to population growth. the glut was the result of the decrease in demand from the great recession collapse. builders were on a tear based on current demand and cheap capital not basing building on long term demand for housing. how many builders failed over extended?

Any way... please post your license number for all since you said you have one... that right there moves you up in my book.. most of the wholesalers we do buy from are licensed especially the Florida one's were its mandatory to have a license if you going to be selling RE.. again many break the law but that's the case in a lot of states.

There was a court case in 2014 to exclude purely passive investors in LLCs like a private placement fund, but active management is still considered subject to the $800 franchise tax fee.

@Anthony Micklus I experienced VT craziness when I worked in the market research industry, we would do work all across the world and in every state ... except VT because of their legal system.For me, Washington Crossing, PA is because I was born there, but even if I don't live there (probably the case in the near future) it would be the first area I would invest.

Case in point: Suresh is now referring my property in the Southside to his cash buyers (who are also Indians).