When its included in a lease for real estate then the laws pertaining to residential rental security deposits in your state apply but when its separate you should have more leeway to get some additional deposit to protect you.

Unfortunately, the husband lost his job about 8 months ago and, from what I'm told, hasn’t been able to secure another one—not even in retail or fast food.

For the past two years, my primary income has been my Social Security, and my home is fully paid off.

This lack of competition can allow for more favorable negotiations and greater chances of securing desirable properties.Since pre-foreclosures are not yet on the market, investors can often negotiate directly with homeowners, potentially resulting in more flexible terms.

.- Financing: Starting with cash but hoping to secure loans for future investments.

I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

If you're already in a secure financial position, leveraging your equity could be a smart strategy.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

I did the right thing by asking for the security deposit and first month of rent before handing the keys.For the next two months, she has been a nightmare.

This provides you with a safety net for any unexpected expenses during the rehab process while also potentially allowing you to secure higher leverage on the purchase price.