He's also accepted a $1,300 deposit (1 point prepaid) which he refuses to return to me.

What you don't see is that in the background, Quickbooks Debits an expense account and Credits your Accounts Payable account.  

I believe you can do prepaid credit cards through your bank, but that involves paying interest on your own money or something daft iirc.As for the immigration process, it doesn't take into account credit ratings or score or bad debt from your home country.However, it does take into account criminal records and drug use.

We allow tenants to pay with credit/debit card or a checking account (ACH payment).

The seller agreed to the following terms: Seller will contribute to $X towards the buyer's closing costs and/or prepaid items. 

If you have other questions just ask.The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).

So, my counter closing date is 4/1 (if seller can collect all the rents for April which  are to be prepaid at closing).

(We get a %0.25 rate decrease when we pay with an auto debit payment.

Class C means they SHOULD have a bank account/debit card, so there should be no issue with them getting you the rent electronically. 

This can be anywhere between 15% and 39.6%.The tax applies to the percentage of the income derived from the non-IRA capital.So if you bought a property worth $100K with $40K down from the IRA and $60K borrowed, then 60% of the income is looked at by the tax.You then apply 60% of all the normally allowable deductions to reduce that income, interest on the note, depreciation, property taxes, etc.There is a $1000 exemption applied.The net taxable income is then run though the tax table.With that $100K property that is 60% debit financed, assuming a 10% return, your tax bill at the end of the year would be about $175-$200 depending on factors such as the interest on the note, operating expenses, etc.