@Keeya WangJones  Some or all of these questions need to be addressed by your local building dept. 

Or all commercial real estate?  

Then save some or all of the cash flow from the rentals for investing as well as my current excess. 

First of all is there even a lease to begin with, or everything has been agreed to orally until this point?

You need to be onsite managing the problems yourself or all the money you put in the front door will walk right out the back door.

@Scott Weaner and i quote: "oral copulation with a minor age 14 or younger"

Some PM's will mandate holding and controlling the deposit to avoid getting stuck in the crossfire of a property owner refusing to return some or all of the deposit to a deserving tenant.  

Look to buy undervalued rentals and you can keep on cash out refinancing, essentially getting most or all of your initial capital layout back.  

I do buy 10 year policies for construction defect and these are costly... 25 to 50k each.. cash up front.. but I get 10 years of 1 to 2 mil.. protection on 8 million dollars worth of homes.. so per home and per year not bad.. you just need to stroke the check up front. this is if you had like a LP siding issue or all your windows went bad in the subdivision.. and the money is basically to hire lawyers to protect yourself.

Just remember, you're buying the house but the seller acts as the lender for part or all of the sale price.