Don’t pay attention to what other people do.

This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

If the deal is good enough their may be enough returns to pay investors as well as yourself.

Make sure the tenants are paying market rent or above, otherwise your loan will be DSCR constrained.

On another note, I don't like the idea of paying all-cash. 

Also, the idea separating them is so you don't accidentally spend them and then no way to pay it back when the time comes.Some states if you don't refund the security deposit within X amount of days, the penality is that you will have to pay back the security deposit x2. 

It's a shame when I see the mark up or what out of state investors are paying for these 'turnkey' properties. 

To fulfill the contract the Seller needed to pay for the survey, which resulted in a size of 1.8 acres. 

If they pay the new amount on time no problem.

I often have tenants who don't pay the last month's rent because they think the security deposit will cover what is owed.