Do I refund the $1,850 to the three of them and have the remaining couple cut a new check?  

So if they tell you to file you have to file.Settling out of court though I don't believe is in his best interest unless the tenant is out, the money due is paid and the place has been checked for damages and the remaining deposit is slotted and ready in a check.

On an inflation adjusted basis, we still have room for price increases before we reach 2007 levels. 

My wife also quit her job when our son was born so we are now a "stay at home couple" operating that facility, one other storage facility as well as our remaining 8 MFH from home.  

For example, if the loan was $100,000, you could lend $19,000 and the remaining investor(s) fund the remaining $81,000. 

I'm looking to get my feet wet in the little rock region for some buy and holds, I'm hoping to find some recommendations on some good contractors in the area, inspection crews and property management teams that other investors in the area have had good results with.I'm primarily a vacation rental investor, however, my market is over inflated right now so I'm looking to diversify some with out of state long term linear markets, ideally I'm looking to buy low, rehab and rent.

I absolutely see the risks involved, I mean even just holding money seems risky to me, thinking inflation.

Day one cash flow is not the same as cash flow 10 years from now ... you need to make sure it is increasing on an inflation adjusted basis and that goes to the quality and long term supply & demand fundamentals of the neighborhood (hint: quality neighborhoods don't cash flow as well day 1, but do better +10 years).

ARV~ $200K - $10K for contract - $9,500 to catch up loan - $133K balance remaining (did you verify this with the bank?)

My accountant is telling me that you have to take the missed depreciation over 4 years, but I had heard that when you sell the property you claim any remaining in that year.