While it’s a helpful quick filter, the bigger picture—appreciation, tax benefits, loan paydown, and compounding growth—often tells a much better story over 5-10 years.The key is balancing cash flow and long-term gains.

If the deposit does not cover the charges, then you should consider whether you want to pursue collecting the unpaid balance or write it off.You did the right thing, and the tenant's behavior proves you were right.

I consider that a liability,  don't want it on my balance sheet and if I were out of funds I would sit on the sidelines before entertaining that deal.

And, having ready access to capital allowed us to scale more quickly.  2) Because the compensation is so balanced, it makes passive investing much more attractive.  

Sure, it’s easy to get nervous about over-leveraging... no one wants to feel like they’re juggling flaming torches while balancing on a high wire.

How do you balance these strategies, and what signals do you look for in deciding to hold or flip a property?

If I bring on an agent who does not join, I get billed for it and all my agents memberships gets suspended if the balance is past due.  

Without knowing the balance on the first, I wouldn’t touch it at at the auction.

If you use a HELOC I would do a project where you can pay it back(BRRR, Flip) and not keep a balance. 

If you are planning to pay the HELOC back after each flip but then draw it right back out to buy the next one, you will have a loan balance most of the time and a refinance might work just as well for you.