You can do more deals when you have more cash to work with.

And can he legally withhold it for reasons other than pet damage?

That and withholding taxes for any wages or other compensation.Getting your name on the title might be the last thing you want.Potentially you should have your cash secured by a loan recorded against the property.

Improperly withholding money from a security deposit is subject to double or treble damages in some places.

the 3/4 points rate cut would save me about $40 a month on interest on a loan for a flip I'm probably going to do.Not anything great but $400 a month in interest instead of $440 is something.Hopefully I'll be in and out and have it sold in less than 3 months but if I can't sell it right away it helps with holding costs.

Failure to withhold could make the buyer actually liable for the tax.

It's positive cashflow so you're really dealing with holding profits.Tim

I believe that in pretty much ANY state, the Landlord Tenant Laws states something to the effect that "landlord may withhold from the security deposit amounts that are reasonably necessary for (a) rent or other amounts due the landlord and (b) to restore the unit to it's condition at the commencement of the tenancy".

Many are going to withhold the rehab money until you do the work, so be sure you have a way to fund this work until you can make a draw against the rehab escrow.

Treat as crop insurance proceeds the crop disaster payments you receive from the federal government as the result of destruction or damage to crops, or the inability to plant crops, because of drought, flood, or any other natural disaster.You can request income tax withholding from crop disaster payments you receive from the federal government.