It's not an effective strategy but a lot of investors believe throwing in high end appliances in itself secures a buyer. 

I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

2) Your credit score3) Purchase price and down payment amountI would recommend shopping rates with a few local mortgage brokers.

Yes, you bought what seems like a good deal on paper, but in reality, you own an old apartment building in a neighborhood with poor security, possibly surrounded by long-vacant shops, streets piled with garbage, and a poorly managed community.

The tenants, who were always good, fell on hard times and could no longer keep up with rent payments. 

I am planning to get into the TN real estate market as my first investment and am looking for some information.In particular: Areas to steer clear of, property management fees, typical cosmetic rehab costs, etc.My strategy is to put large down payments on 2 properties (relative to housing prices) to help pay for my living in NY while still gaining appreciation in a growing real estate market.

Quote from @Jaša Rot: Hello Marshall,thank you for your reply.my idea was to sign a trust deed and promissory note with the borrower so that the loan is secured by collateral.

Yes, my banks require a 1.2 DSCR debt service coverage ratio, meaning they want to see rent 20% higher than the mortgage payment.

I would then find a 2-4 unit deal that I could put down a 3.5-5% down payment on as an owner occupied rental.

If you sell a property, and do a 1031 exchange with the proceeds, but don't need all the proceeds for the down payment of the next property, are you taxed on the additional profit that isn't part of the exchange?