It's simply factual:  you violated the lease by smoking, stop it, remove the resulting odor and that a repeat action could result in eviction and loss of security deposit.  

I completely agree with @Ashish Acharya's points about the cost-effectiveness of a HELOC and the potential credit implications if it’s secured by your primary residence.

I guarantee you are more likely to secure favorable terms if the seller likes you and can imagine you as a great operator for the business.

I would echo the post about security. 

Prior to the GFC I had a pretty robust HML company with 20 plus employees doing 60 HML a month through out the mid west Rust belt and deep south by 2010 It was over like 95% of all HML we all got our butts handed to us..

If the loan amount you are looking for is small relative to the value of the first and the second property combined, they are very well secured on a LTV%; ask for a 1% point lower rate.If you don't want to Cross Collateralize, do you have any CD's or MM you can transfer to this bank as collateral. 

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

If you see work crews reaching out, ask the person in charge of securing housing where they go looking.

I know I need to hold the security deposit in an escrow account.  

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.