We expect to have holding costs of $15k to get through the off season and the condo is pretty updated so we would only be spending $10k in renovations (updating the bathroom and then finishes in the remaining rooms).

If they used a loan for a primary residence, there may be some ability to enforce something but that really doesn't impact your decision. d) There is no effect on capital gains since they didn't use it as their primary residence for 2 years.

This deal showcased our effective renovation strategy and commitment to delivering profitable outcomes.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

This deal showcased our effective renovation strategy and commitment to delivering profitable outcomes.

Mortgage Costs UP - There will now be folks with a higher risk obtaining more debt, a lot more debt.

That is not reflected in the lawsuits related to this issue.You make no mention of the escrow costs or tax implications or transfer taxes or scrutiny that is involved with a deed back.

Estimating cost for streets and utilities is just a piece of the puzzle, and likely easier, although more expensive.

Eg if owning a house for the mortgage, insurance and taxes alone would cost you over $3000 a month (mortgage alone on a 25 year amortization for $500K is $3000 a month, goes down to $2700 on a 30 yr mortgage). 

I know cost is a factor but think about overall functionality and does it do the 7-10 things you really need?