For me, the later option sounds more reasonable, cause the exteriors are covered by the HOA.

That's what I mean when I say fraudulent folks coming into this space.This did not materialize as much as I thought and I think it was cause everyone anticipated a rate cut, thus such a fund wouldn't need to be made.

That could help your cause. 

Santarelli as an absolute industry expert (podcast, websites, press, social media advertisement) cause investors to have a false sense of security.

We’ve seen this issue cause otherwise wonderful new builds to sit on the market because it just doesn’t work with peoples furniture. 

At 70% LTV that loan would size around $44 million (less if cash flow causes a coverage constraint). 

Also, take as many pictures as possible before the tenant moves in, again this protects you in case of damage caused by tenant. 

Would cause me to not even ever considering that in today’s environment.

If it is covered it's usually if caused by a covered loss meaning mold develops due to some other covered peril. 

Here is  the biggest question - I expect withholding  $1.00 of the security deposit is going to cause friction.