Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

The rate might not be ideal, but securing the property now is crucial—you can always refinance later for better terms.

My question is, is there anything more I need to do to (i.e. issue a formal written notice of lease violation) in order to prepare for the possibility of keeping a portion of their security deposit to pay for eliminating the odor? 

99.99999% of all lenders are going to come after the secured asset, not the entity's other assets. 

Also check your states Security deposit laws.

Efficient negotiations secured the property for $158,000 on favorable terms.

Finding a property, negotiating a deal, securing a tenant, and managing a rental is seriously hard work!

If you're coming back to SD and want to live in the home you have here for the long haul, it's nice security to pay it down.

Thankfully she bought like that and did not have an emotional attachment. 

However we also have a law that states that we must provide an accounting of the security deposit funds and refund (if applicable) within 30 days.Solution: Create the security deposit move out form.