Another way to say is that what is the value of the property (today) compared to what is owed on the loan?

Quote from @Max Emory: @Bob Asad, there are a lot of different account structures out there but absolutely keep security deposits in a separate account from your opex/income account. 

Do you have a significant other who could take out the loan?

You're dealing with two parts of the IRS code.1.

Feel free to reach out if you have any other questions! 

Focus will be your superpower - figure out which strategy you like best and double down on that! 

Looking for feedback from folks who have been in similar situations and have lessons learned or advice, as I am just getting started and this is literally my first post.Wife and I moved out of our first townhouse and rented it out to grow our family 3 years ago.

@Serge Hounkponou Recommend you first figure out the property Class you want to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I currently live in WA state and invest out of state for buy and holds.

A clean-out at the property line is the norm around here.