As I see things, my options are: (i) eat the cost; (ii) have seller adjust the purchase price down by some agreed upon amount; (iii) have seller write a check for the missing security deposits; or (iv) have inherited tenants pay a security deposit when we take over the property.

Understand the person and adjust your message. 

Your example is basically like living off capital gains by selling stocks until you have no stock.I'm looking for something that pays me dividends but increases in value over time, adjusted for inflation.... 

Here's the numbers:Single family house in NE San Antonio. 1,456 square feet, 3 bed 2.5 bathPurchase price: $105,000Rehab; $20,000Hard money loan: $112,500Cash out of pocket (From HUD stmt):$12,500 (down payment)$2,250 (points)$385 (lender fees)$892.50 (title fees)$1,320 (insurance)-$2,001.34 (credit for unpaid taxes)Total: $15,346.16Actual rehab cost: $19,678.12Hold time until rehab and refinance complete: 98 daysInterest expense: $3,020.55Refinance loan terms: 30 year adjustable rate mortgage at 5.75% interest fixed for 5 years at 85% LTV and 1 point.Appraised value: $164,500Cash-out refi amount: $139,825Cash back in my pocket after lender fees, title fees, down payment, interest expense, insurance, etc are all accounted for: $5,389.50Now the place is rented for $1,200 a month and I figure I'll pocket about $200-$300 a month after expenses and mortgage payments and in the end, no money tied up in the deal!

Working with two different professionals in two different locations will prevent either form being able to see your big picture and plan/adjust accordingly. 

Hello everyone, since it looks like there are a few people from Queens,  @Lionel Li @Ronald Speed-Bey @Steve Kontos    @Dev Anand @Amit KalI set up at investor networking event for November 17, 2017 at 7:00 pm in Queens, NYC!

Depending on what kind of ROI your looking for you may want to adjust your numbers on the maintenance and delinquency slightly higher to see if it still makes sense.

I want to get started,  but I want it to speed up my investing ability,  not slow it down.  

@Marcus Auerbach I have a good attorney on retainer, so I asked and there may be NJ specific law that option pmt can't be applied as down pmt -- I'll just adjust offer accordingly if that's the case.

We are currently reviewing the listing strategy with our Real Estate agent for a possible price adjustment and change in marketing."