This doesn't mean you get to keep his deposit however you can deduct money from the deposit for time the property was held. 

He says he doesn't have the money to pay the rent and to get a new place.

@Chris Seveney fools and their money are soon parted!

My perception: with more inventory, price reductions, insurance rates and taxes on a moon-shot trajectory, it's looking like the storm is on the way.

I know who work 4-6 hours a day and make a ton of money and I know people who work 12 hours a day and get no deals.

It's not worth spending so much money on a short basement even if you can, as it will affect the end result. 

Quote from @Justin Brickman: Texas Texas Texas Property taxes, property taxes, property taxes

There is no reason for them to just forgive anything, but it would potentially in their best interests to accept a chunk of money from the owner and possibly do a friendly foreclosure (hand them the keys per se).

Not to say young syndicators can't be great in the business, but I will let someone else prove the thesis with their money first.And to be clear, I don't think experience only comes from being the GP in deals.  

I mean, if I'm paying that much money, I'm hoping for deal on a house.