Just yesterday, I stood in line for an hour at a tiny hip restaurant in a very gritty neighborhood where a few feet away a trendy vintage clothing store opened along with another tiny retail store targeting millenials.  

They advertise an average return of 8%-12% so it doesn't sound too good to be true.

I've used craigslist to advertise my soon to be vacant unit....hopefully tenants move out...gave them 30 days notice for their MTM lease (long story).  

They (a couple) stick to a neighborhood (not trendy areas, but descent working class/being gentrified/peri urban) and simple buy, rehab & rent.

That is why radio commercials, television commercials and people who advertise on billboards about buying houses eventually disappear.

Andrey, we had a similar situation and per the usual HI lease, you can keep the deposit to defray your costs for re-advertising, etc. especially since they had a two year lease.  

~ Reg Z requires full disclosure for "trigger terms" in advertising~ TILA (Truth In Lending Act) has a right called "right of rescission" that allows the buyer to cancel their transaction with the lender within three days of closing.

It wouldnt be what I would call a class A or even B neighborhood (Maybe B/C neighborhood), but its proximity to the trendy Logan square and Wickerpark/Bucktown areas, make it an ideal location for someone who drives a car and commutes everywhere. 

I can imagine the other top reason is someone may say they analyzed the rehab costs a second time and thought it was higher than initially anticipated or advertised by the wholesaler.  

Currently this is our only form of paid marketing since bandit signs are illegal here and one of my business partners is a skilled web advertiser.