Those with cash can disregard this statement though :) 

Or does it need to be treated in a specific way like the security deposit.I am thinking of only taking First and Security Deposit and disregarding the Last Month's Rent....any thoughts would be appreciated!

An LLC is a disregarded entity until you elect for it to be taxed otherwise.

My former employer would say work your full-time job and with your spare time buy as much residential re as you can - disregard price, disregard interest rate, and have no fear.

And while setting it up is fairly easy, maintaining complete separation of money (separate bank accounts, credit cards, money draws and deposits) can be rather difficult - any mistakes could disregard LLC status in events of litigation.  

A single owner LLC is a disregarded entity for tax purposes and files as if you don't have an LLC. 

It's entirely probable that  your LLC is a disregarded entity for federal tax purposes. 

As an added note, I have read a few questions and comments missing the finer point that an LLC is also a "disregarded entity" with the potential to elect to be taxed as an s-corp..

@Jason ColemanWhoops sorry disregard my last response, I didn’t realize I was replying to a 3 year old comment!

If that's the case, the OP may not be committing fraud, but the lender is.J Scott Could it also be fraud if the person making the loan on behalf of the bank is grossly disregarding company policy?