First, most investors and owners of real estate related businesses are in one or more of the following situations1- they’re unable to duplicate their expertise that drives the ROI and they are at their personal max capacity as to time2- they’re obtaining high ROI by use of excessive leverage 3 - they’re obtaining high ROI by taking excessive risk4- they hit correct timing in the correct market, and this is not necessarily repeatable with any probabilityIn order for an investment or business to scale, we need the ROI (on a risk adjusted basis) to be sufficient to cover a PREMIUM risk adjusted return to passive investors; all expenses of managing the assets and the business, and a significant return to the “sponsor” providing compensation to him making the work, risk and time worth while. 

I've had clients rent by the room short and midterm and covered their entire mortgage.

At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu.

Right now, even if you have no reserve money saved, if a bad situation came up you could tap that 401k to cover the situation. 3.

Take the toilet out without damaging it, put a sanitary cover over waste hole, put toilet on shower floor.

The part of the home you live in can be covered under an HO3 (homeowner’s) policy, but the rented unit needs to be covered by a landlord or dwelling policy like a DP1 or DP2.

If you have the means to cover debt, you can avoid the accounts being liquidated.   

My business partner provided the upfront cash for the down payment, and we used hard money to cover the remainder and the rehab costs.

Does he not cover that yet?

I do not know much about San Antonio market so will cover pros/cons of San DiegoCons- price of entry.