"By our math, both single-family and multi-family production are already ahead of normalized demand and estimates of a housing deficit are grossly exaggerated." 

Because of the trade deficit, we have far more containers coming into the country than going out, so they're using them creatively.

So with the recent downturn in oil prices, the oil companies are laying off, and the State is looking at unprecedented deficits, in the 50% of last years budget ballpark.

With the way the market moves, there is either a surplus or deficit of unwanted homes and regardless of which state the market is in, we’ll be there to pick them up.This is more of me just thinking out loud than a question.

Or does that 600+/month include a deficit from the prior year?

It's not that you can't invest there and do well, it is just that currently there is an added governmental issue that is not in most other markets, and may be wise to avoid if you can.The city as a whole has $14 Billion in long term debt and is running on a $327 Million budget deficit.

On move-out, does she have the opportunity to remedy any deficits in cleaning or make repairs?

These are the people that brought you the last housing crisis, FEMA, deficit spending, endless wars in the desert a 55,000 page tax code. 

I'd be shocked if you could save money over the life of the loan by pulling the full amount out and parking it somewhere at a 2% deficit.

Last time real estate took down the economy, but I believe this time around the economy or some other factor will take down real estate, but not as low as back in 2007-2008 time period.Since the last recession, the percentage of people buying houses with cash or conventional financing is higher than previous recession, so people have tons of equity.I would be more concerned about excessive govt spending, social program deficits and govt debt..