You don't know who these guys are tied in with.

Cash that's tied up in rentals is cash that can't be used to buy more rentals.Suppose we take it even further (why not?!)

Because they are not tied to a specific purpose, security deposits can be used not only for damages, but for extra cleaning, missing items, unpaid utilities, unpaid rent, and unpaid fees.

Not just musty dog smell but a stronger one, like urine.  

You don't want to tie up their property without being able to follow through.You can avoid that situation by ensuring you analyze your deals correctly, meaning you value them (ARV) correctly and analyze the rehab costs correctly. 

If you have access to the capital and believe your own numbers, chase it... but having money tied up with no clear way out... get the cash back in your pocket and put it to work in a useful way instead of allowing it to waste away in a sunk cost.

Is the cashflow enough to justify tying money up in long term financing?

Do you have any non-refundable money tied up into this deal??

@Jason Miller  I think liquidity or the ability to liquidate one's holdings when one would need to is very important.. and one of the major benefits of stronger resale markets..

The first is it ties your primary residence (or investment property) to the success or failure of the new investment property.