Hard money lenders also don't really like to lend to owner-occupants due to compliance issues, so I guess it depends on exactly how you set up the process.

It may be frowned on but those that do not place their business interests first usually end up on here asking how to deal with tenant issues.

@Roger Poulin I'm creating a real estate company currently and after I get all my infrastructer completed I'll be using some capital to reach out to delinquent owners in the hopes to get them out of their foreclosure issues, and hopefully also collect a portfolio of land to resell.  

There are 2 different issues here:-Deductions from the security deposit need to be made within the timeline outlined by your state. 

Only you know which route is best (Refinancie, HELOC, etc.) for your financial position but, if you can get funds to pay cash for this, your chances are a LOT better.Your other considerations are a completely different issue.

No issues now, but it's bound to happen eventually.My properties are all in Texas county, but I have no problem dealing with someone in either the West Plains or Springfield areas.

Whether that experience is sitting on a beautiful beach with my wife, or if that experience is fixing a leaky faucet in one of my rentals, or renting to upstanding, wealthy, Class A tenants, or dealing with a low income, but hard working tenant, who is having temporary financial issues. 

@Neil Patak that shines a lot of clarity on the issue.  

Most people wouldn't represent themselves in a court case with a multi-hundred thousand dollar issue on the line, so why would you do it in real estate?

Lots of issues from the tenant, neighborhoods and crime rates.