@Marc Jackson what would you call the average performance (gross income and net income) from a PCB Townhome within say 5 blocks of the water?

@Zachary Scott IMO, I believe this could be pretty subjective but I think it would depend on your comfort level and risk avoidance regarding certain things, e.g. rancher on a waterfront lagoon in terms of flooding issues, age of the home and potential termite issues resulting in structural damage, roof condition and what could be underneath of it from leaks.

They are building a new town center at the corner of my block (literally) with over 1300 new apartment units, 250k sq ft of office, and retail space.

We are currently working on another house a block away that will be a 4bed/3bath w/ 1800 sq/ft and in the last year, 3 full gut Renovations on the same block have sold for 475k, 465k, and 450k.

It is a deposit for damage or repairs, should they not buy or leave on bad terms. 

For me a much bigger consideration is the flood damage, both the not covered by insurance and the time and money to get the property back in shape. 

If they return the rental empty with no damages, you'll hand them the deposit on the spot and part ways.

Six lots up from me on the corner a Broker sold a 3/2 block home, without a garage or fence for $383,000 six months ago in one week.

Also that those repair costs don't affect the security deposit.With me living in the house with many people, if I find that a particular tenant caused a good amount of damage via general misuse or negligence, am I able to charge them for repairs to that appliance?

Sand might be the right consistency to remove what you need without damaging the property but I would do some additional research online to make sure you don't need to use walnut shells or the likes to prevent damage.