I have a month security deposit for $850 which I’m not sure about returning. 

I have a month security deposit for $850 which I’m not sure about returning. 

My suspicion is that because of the hot market returns are being driven down.

I'd want to see the recent inventory that they've sold and if the returns meet your goals, that's something I'd dig into deeper!

Not a big business but still we take care of both sides properly to avoid turn over rates to increase more return to the owners by taking care of tenants quickly and rightly.

As long as you can show there is enough profit for you to pay the loan back and/or provide them with a cut of the return you should be good to go.The flip budget is the biggest thing to tackle because if you are off more than a little it can quickly take you from the black to the red.  

CoC return is not that high and Rent is about 0.9%, closer to 1% rule but on on lower side. 

A broker from Marcus & Millichap told me that this exact strategy can provide excellent Return on Investment if done right.

Ask for tax returns.

(Yes, I know how to vet PMs.)Lots of CapEx in the past two years, mostly updated units.New roofs / new plumbing in most / new HVAC / etc.)Block bombproof constructionProperty has been cranking out greatly increased cash flow each year.2016 - the true net after ALL expenses, management, and repairswas about $800/month2017 - the true net after ALL expenses, management, and repairswas about $1,200/month2018 - so far this year, the true net after ALL expenses, management, and repairs is about $1,600/monthI have actual bank statements / tax returns / P&Ls to verify all of thisMany tenants have been there for 5+ yearsVery low vacancy rateAll tenants current on rentThe negatives:Neighborhood is terrible.