For those landlords who take security deposits in City of Chicago, is a separate business bank account sufficient for the security deposit or do I still need to set up the special landlord account that requires all W-9 paperwork from tenants etc?

(National Real Estate Insurance Group)  They are nation wide and have good rates.  

@Kee Lee  since you said they were older it may be possible that someone became eligible for social security resulting in the change.  

I don't believe they use any security instrument.

How would you handle this in the security deposit?

@William Hochstedler  were I saw this model fail miserably for LA based investors was even though they are full doc.. the cash reserves that are there at the beginning.. investors get this irrational sense of security that their rents are going to come in like clock work that the homes are going to stay rented that their home will be taken care of like they would.. and the reserves end up getting spent on other things in their lives.. thereby wildling down their reserves.YOu have a bad run... you need 5k to fix up and re rent... house is vacant for 3 month during the process... and if you don't have the funds your PM is noting going to front it for you.. and down the tube you go. that's what I witnessed.. these were not speculators  these were people that thought their 100 to 200 a month positive were a given and could never change.. and they were woefully under capitalized. 

I would recommend only using a short or mid-term rental house hack for a 2-4 unit property or a house with a detached ADU for your security and the comfort of the guests, which will make it more profitable.

However, there are reputable websites that offer a wide range of house plans suitable for various purposes, including spec homes.

Partnering with experienced investors can provide valuable insights.5.Creative Financing:Explore creative financing options like seller financing or private lenders to secure better terms.6.Rent by the Bedroom:In high-demand areas, renting by the bedroom can boost your rental income significantly.7.Local Market Analysis:Stay updated on local market trends and network with other investors for insights and opportunities.Always analyze potential investments thoroughly and run detailed cash flow projections.

Regardless of situation you should be aware of all lease terms of current tenants, security deposits, tenant contact info, pets, rental rates, etc.