Putting it into the existing mortgage means it is much harder to pull it out without refinancing which comes with extra costs and therefore defeats the purpose of saving money.

As a side note and it pretty much goes without saying but worth mentioning, In all my leases I have a statement that says:Under NO circumstances is rental security to be used as rent.YOu always get the tenant who tries to use the security deposit as last months rent which in turns defeats the whole purposeo of having a security deposit as nine times out of ten damage can and will occur while the tenant is moving out.regards,Chris

That would defeat the purpose of a spiral.

It defeats the potential of getting conventional financing, which of course is your best loan, ESPECIALLY if it's going to be a long-term hold instead of a flip. 

You cannot contact the tenant prior to closing, but after if you want you can, however that defeats the purpose of having a property manager I think.  

Talk about "snatching defeat from the jaws of victory"- a fantastic RE market for the past two years, a perfect tenant, & this owner might still manage to lose money!

But that's like using your own cash, which defeats the purpose as you're not using the equity in the property.

It defeats my current goal that is learning.

I understand, but the problem is, if I include the actual, it defeats the point, they could refuse to sign it, they now have the address and know that person is thinking about selling, etc.....

The victim mentality is self defeating .