The seller says I can just deduct the repair cost from the tenant security deposit. 

Investing requires TIME, patience, and it's not instant. 

Owner says rents are about $2-300 under what they could be but with the tenants being loyal and the way they are their own small community she recommends not raising rent.All 7 homes run off of 2 wells.Some differed maintenance but overall nice condition trailers range from 70s-80s model Owner says property manager/handy man lives next door and handles everything for her from maintenance to collecting and deposit rents.

What should I put in for the security deposit- since they gave it in 2019? 

However security deposit disputes are considerably more tenant biased now.

Not only was the security deposit 'owner held', but January rent was sent as well. 

That journal entry also debits a special Asset account “Due from PM” that decreases that asset and inscreases when PM direct deposits and the transaction matches as deposit on “Due from PM”. 

@Daniel Mendez As much as possible.If we do a holding agreement to take the unit off the market we try to get them to pay the first month rent and any other move in costs other than the security deposit, which they pay at lease signing. 

Under the circumstances, assuming move out inspection was ok, would you return the entire deposit? 

Higher due diligence deposit and going over asking price to win the offer is back....