Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle.

Are the personal deposits categorized as owner equity?

Offer to refund his security deposit , and give a positive reference (assuming he's always paid on time)  and throw maybe $500 more at him in a cash for keys deal.   

Did they leave a security deposit?

In Texas according to my attorney it would be a deduction and not a mishandling of deposit funds which is taken very seriously in Texas and most states. 

Goal is to flip houses to build up larger cash deposits each time.

Think of 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.

What's the custom for allowing, not allowing, charging an extra deposit for, or any special considerations, (or none) for the issue of smoking in your apartments?

I was getting a lot of inquiries and I would say about 90% who don’t even qualify— bad credit, asking if I will work with them on the deposit... etc.

When we asked for updated bank statements, updated paystubs, a 2 day old baby chicken, and to source a large deposit, at 7 AM, she sent all the paperwork within 5 minutes and had a courier bring us the 2 day old baby chicken within 30 minutes.