The refund part is just to get you get committed to another deal that makes them even more  money than that refund.

If they don't, then you file a claim and hope the insurance company squeezes the money from the tenant.Get rid of this tenant.

If so make they have their earnest money held by the attorney and not the agents broker.

The lender may figure if the borrower had this kind of money they’d be making the mortgage payments. 

Co-living I like a bit more because you have less money needed for furnishing a property and CO laws allow it in the major cities unlike STRs.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

If you had also spend money on renovations and improvements while occupying those should have gone into service then as well. 

I've already paid for an appraisal and the earnest money is recoverable.Thanks BP family! 

Could someone break it down step by step for me and explain why yes or why no and if yes how would someone like me with little money get it done and profit from it.10 unit multifamily investmentI look forward to learning from someone that has done it.

Sometimes, we tax professionals can save you a lot of money or save you from a major problem.