The deposit stays on the unit until all have vacated. and refund check is written with all 3 names on it.If for some reason 1 of the group has to vacate, if they paid a portion toward deposit they would have to work it out with remaining roommates to get a early refund from them or wait until the others had vacated.  

I'm close to maxed out on the rehab budget, and the $1900 for the 1st Instalment of Property Taxes would be a decent hit to my remaining cash/budget.

This includes whitewashing issues with the property, inflating potential rental prices, etc.6.

So $70 - $7k - 50k + home imps = $13k gain on sale or so taxable at capital gains according to your regular income tax bracket (15-25%).Then gift her the remaining money tax free.

In 15 years you will have a free and clear property that is cashflowing significantly, and it's value increased about as much as inflation and maybe more.   

I am on several mailing lists and maybe 95% of what I see is not good (inflated ARV, underestimated repairs, etc). 

If there were no prepaid rent, the tenant most likely would simply give notice and walk out of the lease, and the landlord would have a difficult time enforcing the remaining balance of the lease, as this would probably be considered a good reason to break a lease by most judges.

At this point it's mostly interior cosmetics and bathrooms (full gut) remaining, about 8 units.

It does need some work but mostly cosmeticsHere are the property details:Purchase price: Owner doesn't have one1987 14x60(singlewide)2/1rehab cost: 2-3Kowner holds a current mortgage with a remaining balance of $18,600fixed rate at 6%PITI:$400property tax: $588Land value: $18,900(sits on a double lot for a 9,000sq/ft lot)Building Value: $22,200Projected rent: $850/month plus utilitiesComps: It sits in a neighborhood of mostly doublewides and modular homes so my comp pulls were insignificant The seller is not overly motivated.

(In the process of selling the original house at a decent gross profit but likely less impressive after factoring in inflation, adding back in depreciation, and the time value of money).