I'm not a credit repair expert bla bla bla)Unless someone would like to argue that putting $X on a debit card is somehow going to make someone a better tenant than that same person putting that same $X on a credit card...

This was never mentioned prior to today and I tried to argue back saying this was not negotiated before.  

If you are interested in the 5+ unit side of multifamily / apartment investing, I would highly recommend the following 4 books:1) ABCs of Real Estate Investing by Ken McElroy2) Wheelbarrow Profits by Jake Stenziano & Gino Barbaro3) Multi-Family Millions by David Lindhal4) The Complete Guide to Buying and Selling Apartment Buildings by Steve BergesThis will give you a "crash course" in apartment investing.

Your own numbers did...and the numbers don't lie...so never argue with them.What it sounds like is you're looking for someone to "rationalize" this into a good deal.

This article is from CCIM/Commercial Investment Real Estate Magazine - May/June 09 EditionDo It Right: The ABCs of Due Diligence for Distressed Properties  by John F.

I hope you will find an answer and more clarity to your first question under the conclusion section.http://www.biggerpockets.com/renewsblog/2014/06/28/abcs-real-estate-asset-classes/Although our company is a turnkey provider I contribute to the forum with my perceptions, opinions and experiences and not to sell any of my properties.

One can also argue that the risk is greater with a $600k house versus a $160k house. 

I don't know that I can argue with him, so I'm considering renting it as a 3/2 instead of a top/bottom 2/2 and 1/1 (after major reno).

The one benefit I haven't seen mentioned is that if the tenant has any intention of thinking they are deserving of getting a portion of the security deposit back still, a bill showing they owe more than the security deposit will likely result in the very least of them forgetting about arguing that they are owed any of the security deposit back.

Also, cost basis is higher with these kind of units, so you have farther to fall in the appreciation game.Those in disagreement would argue that you can always discount and fill these units, also the appreciation potential is more likely.