So what if you lose your security deposit?

you found the deal partner puts up the cash you do not have.NO HML or lender is going to go behind a HUGE first with a small second that's lending 101 of what you don't do... you could find some sucker of course that has no clue how dangerous that is for them.If you don't have friends and family reposition and post and look for equity partner.. give some upside to get the deal done.. you don't want to lose it looking for some phantom lender who is not there.

If your present circle of friends are more interested in enjoying the good life day to day lose them quickly as they will be a detriment to your future.

But once you get one, it's less likely to lose money because there is a good chance that the sale price will be higher than what you estimated originally.

@Mark SenecalTurnkeys or rentals in general are not that great in SDIRAs because you lose the depreciation benefits and ability to leverage.

I would rather nave no deal at all than lose money on a bad deal.For estimating CapEx costs, some people just take a percentage of the gross rents, say 5%, to set aside for CapEx. 

If the deal is too thin to support a hard money loan and/or there is not enough borrower skin in the game to recoup your capital if things go awry, then you can lose money just like any other investment where capital is put at risk to earn a return. 

I am speaking from experience and watching countless investors lose out on low end rentals.

The override would be on all distributions and excess returns upon sale once all initial capital had been returned to investors.  

You may have been brought up in a situation that limited your understanding of your potential, but it's time now for the past to lose its hold on you.