Walking away is not always practical when you are scheduled to close quickly.

@Pete CorderoPete, I’ve seen a lot of investors weigh “Build to Rent” communities versus traditional mixed neighborhoods, and here’s the practical take: these new developments give you modern, turnkey-ready homes that need minimal rehab, which is perfect if you want consistent cash flow without the headache of repairs.

You could certainly try to hold the vacating tenants liable for the remaining balance of the rent due, but in practice it's going to be difficult to actually enforce.Double check your lease about occupancy limits but yes you can set a limit for how many people occupy an apartment you own.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney.

@Diego Alvarado, thank you for the honest and practical insight.

Before retiring from work as an attorney, I lived and practiced law in the West Texas area for over 40 years.

While the “debt to equity” practice may not meet MY PERSONAL definition of “fair”, in and of itself it is not illegal, unethical, or fraudulent.Truth is if the posters warning about the subject have accurately portrayed the specific situation, there is cause for concern.  

Looking for practical experience and legal/structural suggestions from Texas investors.

Keep it simple: define your buy box, underwrite deals with conservative rents and full expenses, and practice your 60‑second pitch to investors using a credibility‑first frame: problem, plan, numbers, protection, timeline.

The practical reason behind this question is because even if we start building a house right now, it will not be completed by January 1st and I’m hoping to capture the tax benefits (deferral) for 2026.