You should still be able to find a few lenders to do smaller rehabs like that, as long as the ARV supports it, and often times the BRRRR tends to work better that way because if it is in a good Sec 8 area with rents that support the ARV, the refi can work out well.Happy to connect and talk through details if you are interested!

Throw the PM under the bus and tell the tenant the PM screwed up by not collecting a deposit and see if you can work out a payment plan for that. 

Let them know that if they do not make this right, you will file a complaint with the state and sue them.If they don't settle, file a complaint with the Colorado Dept of Regulatory Agencies: https://dre.colorado.gov/complaint-processBe as detailed as possible and provide copies of documentation (letters, emails, texts, phone records, etc.).When the property manager is notified of the complaint, they will probably try to work out some form of settlement.

It didn't work out, but he tried very hard to make the deal work.

Or even I can sub contract work out to other companies and bill it via my own company name.

Three properties for $170K sounds like a bargain, especially if you can force appreciation after a turnover.If the property is breaking even with the initial purchase, I would pull the trigger on this deal with plans to BRRRR (Buy, Rehab, Rent, Refinance, Repeat) the properties as each one turns over to recycle my cash if the numbers work out.

Did it work out well for you?

It doesn't always work out perfectly but it's been a great strategy for us to build our rental portfolio.I'm sure there are lenders who might chime in with other recommendations.

So how did it all work out? 

I had to have the visceral experience of committing to a 30 year obligation was 5 times my annual salary and then watch it work out relatively risk free (because I have to live somewhere) to feel comfortable making multiple six-figure commitments.