Assuming it's written in your management agreement somewhere that states the owners are current on all financial responsibilities related to the property, does anyone require them to actually provide a current mortgage statement, HOA payment record, taxes paid, etc..... at least at the time of the original management agreement signing.Recently had a new owner sign the agreement, only to find out after we had secured a new tenant for them, that they were in financial distress to say the least (inquiring about bankruptcy) .

It will depend on the amount of security you are offering, the attractiveness of the interest rate, and your ability to raise cash, among other things.

@Sam TrightBesides the other comments above you also start really walking or crossing the fine line of selling securities when you start bundling up parts of a note and selling it to different people.

And where do you think you can get rents.We've been able to secure 80% loan to cost on these types of deals with a credit union recently. 6% is a good rate, but I would see if you can shop around the LTVGood luckGino

State/local are determined by your state of residence, not the state the property securing a loan you hold, or property you own is located in.  

Should I have them pay right now or out of security deposit whenever they move out? 

Also, is he entitled to the security deposit (minus any repair expenses)?

@Craig Bowman Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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 Class A property in Class D area, what quality of tenant will you get?

If they want a security alarm, they pay for it (not really an issue here). 

If you want to proceed, please gather these few documents, and email them over to me.Photo ID: Please provide a clear copy of your valid photo identification.Proof of Social Security Number: Documentation confirming your Social Security Number.Homeowner Insurance Declaration Page: Is the cover letter with your policy number and coverage amounts.