They will be more focused on finding a buyer for a deal vs what date the DD ends and EMD is owed to the seller and most likely not be cancelling the contract or extending the DD to protect the lenders EMD funds. 

@Paulette Midgette I haven't looked at that statute in a while but I would check to see if the Home Improvement Consumer Protection Act ("HICPA") applies to this situation.

I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

If you choose to play with fire, that is your perogative.For your reference, here is a good primer.Here is the key paragraph:Rental discrimination is when a landlord or property manager treats an applicant differently based on the applicant’s inclusion in a protected class.

On the other hand, pros include increased cash flow, engineer-based data for the clients CPA, audit protection (with the right firm) and the ability to deflect that recapture fee with a 1031 transaction.

To protect your deal, you can:1.

Finds (1) half of what plaintiffs told him is incorrect or untrue; the potential defendant has filed all the correct paperwork for Reg D and hence has “statutory” protection against almost all but fraud; unlike what the plaintiffs believe and told the attorney the risks WERE disclosed to them, NO specific return was promised them; and the defendants have not stopped communications; they merely grew tired of the 82 daily phone calls asking, accusing, and raging by the same three plaintiffs.  

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

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.

I'm just starting out with a STR and I'm in the process of vetting companies for tax strategy and asset protection.