.- Almost impossible to get any kind of unit damage paid for beyond what you have in a security deposit The rest of your statements about the homes needing a ton of work, contractors costing the same, and dealing with properties that are very tough to force appreciate are spot on.I personally do not invest in Section 8 housing anymore because they are normally cash flow purchases.  

I think that is why I found the deposit so appealing because they would handle all of the above, seemed like a better way for REO agents. 

Seller disclosed leases and may have kept half of deposit.

Or for Closing cost, Ernest money deposits, etc.

For example contractor qoutes you 30k for renovations with a deposit of 10k.

The tenants must have a strong application and a landlord reference with the cat, pay a larger deposit and higher rent, and they are inspected more often.Nothing will stop the odor.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

I just want to make sure that I am able to fully validate all of the financials and not on the hook/forfeit my deposit if the numbers do not match what's being advertised. 

Prior to anyone submitting an application ensure you share your rental criteria clearly ( i.e. credit score, your preference on acceptance of rental collections, evictions, felonies, misdemeanors, pets etc. ) as well as sharing any additional charges ( i.e. monthly pet rent, pet deposit(s), security deposits, admin fees etc. ) people unqualified will usually "walk" as this stage and that is where you will save time. 3.

Typically lenders would request 2 months of rental receipt + bank statement showing the tenant paying the 2 months of rent to the landlord OR 1 months of rent + security deposit if the lease just started.