Thank Wayne for the explanation.

Dave, thanks for the explanation, I appreciate it.

Your explanation of events is long and a bit difficult to read (you may want to shorten to encourage more responses), but I would try to go over this person's head/chain of command and complain that they did not explain that the $100 was non refunadable. 

Much whining and complaining later, and many explanations by me about how much it costs to keep the heat at 85 and how no one else in the building complains and they all have the same set up, and one call to the utility company when their CO detector went off (they decided using the gas stove to heat the place was a good alternative) the tenant (who pays their own electric) has purchased space heaters.  

@Kory Thaut thanks for that explanation.

Give your lender a Letter of Explanation and a copy of the withdraw history and the deposit history for the account. 

Caution... you can make 10% with the Norris group right there in LA and have a straight up investment.. this is a scheme and probably one that does not pan out.. just a guess of course.. and your explanation is anything but clear however any risk for 10% is not warranted in my mind

If the house was gutted and rehabbed I take that into account vs if it wasn't.I know you have to have "hard value" to show your lenders.. but if I was a lender I would rather have numbers and explanations from the guy doing the investing than a piece of paper that you paid $400 from a guy who took an internet class to appraise a property.

Good simple explanation and example of RUBS.http://www.accurateutility.com/rubs.htmlThe beauty of moving to RUBS is the "forced appreciation" w/this move.  

I am not sure I agree with another post that you should fire your accountant, but asking for an explanation is a good idea.Most people push into LLC due to either partnerships or for liability protection.