@Donnie Jones I agree with Jonathan and Nathan, its definitely a challenge to start off wholesaling and takes a lot of grit and consistency to see success but not impossible.

VA Cash Out refi's must demonstrate a Net Tangible Benefit to the veteran, strictly defined by VA, to do one of the following: eliminate PMI, reduce the rate, reduce the term, reduce the payment, increase residual income, renovate or repair your primary residence, convert from ARM to fixed rate, or stay below 90% LTV. 

This would increase your returns and lower your taxes by spreading the gain over several years. 

If you have already completed the exchange and are facing boot, a cost segregation study can help reduce your taxable income by increasing depreciation deductions, but it won't change the fact that boot is recognized.As @Bill B.In a partial exchange the tax is based on the boot received, not prorated across the entire transaction.

How much extra security deposit and rent increase is appropriate?

The difference would be $6,800/year with a 3% increase over 5 years. 

Focus and consistency are going to be your best friends.Also, I wouldn't tackle buy-and-holds right now unless you currently have a high cash flow revenue stream in place.

Essentially, this investment appears to double the initial capital over five years.However, I’ve been noticing an increasing number of these properties being listed for sale.

This can potentially lead to problems and the safety of the others in the home.I am planning on speaking with him about the lease violations and switching him from yearly to monthly with an increase in rent, due to the increased labor of the cat and the checks in of the cleanliness of the room. 

Focus on location: Look for properties near colleges or hospitals—they tend to bring consistent, reliable renters. 2.