Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If you choose not to show up, he would almost certainly be awarded a judgement.Of course, you could choose not to pay the judgement, but then he can send it to a collections agency and your credit score will be trashed.I don't see a scenario here where you get through this cleanly.  

He is trying to collect all the hurting students for his new investment company.Tyler Deveraux and Ryan Woolley are both starting new companies.

The goal is to make money, collect profits, NOT collecting properties.  

I didn't qualify for Collective Genius because I don't do a lot of volume.

I too know many investors who buy very low cost properties and own them for cash and collect rent weekly and a few collect monthly.  

Simultaneously, develop a detailed scope of work and collect bids from multiple contractors to compare costs and timelines.

If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

If so, then I would return the portion of the security deposit to the one leaving and collect that same amount from the one staying. 

It allows them to keep those afloat and can collect fees on that side by retaining ownership of the deal.