Some people demand the equivalent of one month's rent.

but if it costs $1400 to rent the equivalent unit then you're ahead because... you are both ( 1 ) paying less and ( 2) building equity. 

I think I read somewhere on BP using a property management company to fill a vacancy (for a fee equivalent to 1 month's rent).  

Because of zero basis, when they sell their share in LLC they would realize an equivalent capital gain (of the same nature, long or short, as they contributed initially).Also, I think your point on "at-risk" value is valid.

When faced with this situation personally (I was 23 and making $48,000 per year - equivalent to $60,000 per year today), I chose to forgo the tax advantaged accounts in favor of a house-hack.

After a year, I'll be able to sell it, then buy equivalent investments in my Roth IRA.

All my cash flow is put into maximum overfunded permanent life insurance.That is the equivalent of a savings account that brings between 4.5 to 6% return, is asset protected against creditor, is transferred to your heirs tax free and also as an add on gives you a cushy life insurance coverage.

While it's common for landlords to request a security deposit equivalent to one month's rent, requesting two months' rent is not uncommon in some areas or for certain property types.

Simply asking for your bank and branch does not provide the landlord with the ability to inquire about your accounts or their content - under Canadian privacy law that would require explicit written consent.That said, in instances where applicants are self-employed or graduate students living on research grants, we often request bank statements as a means to verify ability to pay.Here in Canada, a landlord may request a social insurance number (SIN)  - our equivalent to a Social Security Number in the U.S.A. - but they cannot require it and the applicant is under no obligation to furnish it (again, due to privacy law).  

Generally people recommend using an FHA loan (or the conventional equivalent) because it allows you to acquire the property for relatively little out of pocket4.