If he stayed, you could run good tenants out or attract more illegal activity, neither is good for you as the landlord.I would only take money from the security deposit to remedy actual damage which could include odors if there are any.

I'm a marketer/graphic designer and eventually want to flip and stage.

@Jay Dewberry's suggestion looks great, but I can think of a less attractive and no doubt less expensive approach.

I'd assume the lower $570 on every apartment, due to the units being less attractive over time due to being "dated" .Do assume 8% minimum vacancy, 8% repairs, 5% capex, 8% mgmt.

I actually learned about expected value in my past professional life as a control systems engineer designing Extended Kalman Filters (you can google it if you like), not blackjack ... 2 vastly different paths that lead to the same exact conclusion :). 

You do run the risk of the deal falling through and then you're in the boat of having a house to sell that was designed and built out to someone else's spec's. 

How to find a property that will be attractive to tenats?

:) But kidding aside, yes the home prices are low and that was the attraction for me coming from Phoenix, but the taxes and laws here are extreme and definitely don't side with the investor.

A good appraiser is your friend - look for MAI or SRA designations or education from the appraisal institute.

Or did the agency simply designate you an agent?