DEFINITELY don’t let them move in before you have the security deposit.

So, if you don’t get approved, you’ll have to start the eviction process which will also take several weeks until the tenant is officially out. 

For this, I need intelligent lawyers who understand creative deals, are ethical & secure their client’s interests.

It's all totally survivable.It will take 90 to 120 days to go through the process and then you can start rebuilding.Banks won't lend to you in the future until you clear the deck and rebuild your credit anyway (usually through small loans at first and secured credit cards.

When done improperly, as so many people do, an LLC is just a "security blanket"; it gives you the illusion of safety and little else.

We're not sure how to handle the security deposit.

In other words, secure funding privately or secure funding commercially? 

Our typical strategy is to purchase and renovate a property with cash (or Lines of Credit), stabilize it with good renters, then eventually refinance on a 30 year conventional for a more secure, long term investment hold.

Hey Min, Can you buy the property in advance as an "investment property" and then when you officially make the move, you can refinance it into a primary residence at much lower interest rates?

TR-31 (new mandatory security) requires substantial cap ex to meet regulatory requirements.