However, it does mean forfeiting the deposits which is tough to swallow. 

I did not want to incur the cost but I figured...that maybe....just maybe....sometime in the near future us ADU home owners may be able to rent both units....like a duplex.At that point it will be worth it to let the tenets be responsible for their own bills.Not saying that other ways are bad...they are actually very cost effective if you are living there...but what about as you scale your business and move onto other properties.This of course if your city will allow you to rent both units...the city I am in is tough but things can change as more pressure is being put on affordable housing.Once again...not saying any way is right or wrong...I just did it this way for the reason I just mentioned.Thank you....

People are holding on to their properties to see which way the wind blows, so finding a decent student property right now is tough.

NY is a very tough state to evict, so, you are better off coxing the BF out ASAP.

@Daniel BoucherThis is a tough question.

.- increase in vacancy to 30%, 40%, 50% (this could be a combination of bad luck: one unit water damaged, one unit tenant trashed, and you have to evict two more - on a 10 unit portfolio that would be tough, even though only temporary)- lower rents (for whatever reason, what happens if rents go down 10% or 20%?)

Best to err cautiously and not really anticipate changes until they are material.

One alternative planning approach is called a Lazy 1031 Exchange, but getting the timing right on this can sometimes be tough.

Agreed  is it legal YES  can it work YES  is it much tougher than the blue sky pitch YES  just like anything around wholesaling its a tough gig it just is.

Does that include materials and labor?