I met enough people and saw enough stats to believe that REI handles their tenant screening and property management with the same ferocious level of commitment and that's what I came for.

If the owner has a PM handling the renting any suggestions on approaching them with the opportunity for a 2-3 year lease? 

I think that is why I found the deposit so appealing because they would handle all of the above, seemed like a better way for REO agents. 

let them handle  for you.

I run the business and manage the PMs but its too much for me to handle in addition to a day job.

I got back to the attorney, gave him the number for my insurance and they'll handle everything.

To avoid this issue, consider purchasing future properties directly through the LLC.You could also set up a Holding LLC for the properties and a separate Management LLC to handle operations, keeping liability and management activities separate.

This might be due to subsidy or assistance programs where payments are deferred or not required under certain circumstances.Verify Loan Terms:Contact the lender or servicer handling the HUD loans to get a clear understanding of the terms, especially regarding interest, payments, and any special conditions tied to these loans.Consult a Real Estate AttorneyGiven the complexity of dealing with multiple HUD loans and the potential implications for your “subject to” deal, consulting a real estate attorney or a knowledgeable real estate professional is highly recommended.

How do I handle the security deposit?

If the properties can handle (as in still have positive CF) a 15 year mortgage, do that...and refi 2 properties every year.