Do you currently have enough funds to pay first month’s rent and a security deposit?

Thank you Eric.In addition to the rental properties, my wife and I have a paid off house, paid off car, and about $1.4m in retirement accounts, brokerages, and savings.We live in a HCOL area and our expenses are $9.5k per month even though we live pretty modestly.I set out initially to have real estate pay for at least some of my expenses in order to give me more freedom and financial security.

I did the right thing by asking for the security deposit and first month of rent before handing the keys.For the next two months, she has been a nightmare.

It's impressive that you secured a deal like this with no renovations and turned it around the same day.

I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

The agreement is contingent upon the buyer securing financing which I was not able to do and have provided a denial letter.The seller is requesting money for damages because the appraisal came in at the purchase price but needed a heat installed in the kitchen which the seller agreed to install (Not in writing).

Thanks for the feedback—it really makes me step back and think about this whole situation.To answer your question about the hard money loan: I went that route because I needed to close quickly, and hard money was the fastest way to secure the deal.

In the lease it states that a security deposit of 1 months rent was collected. 

The owner has agreed to give up this access if he can secure alternative access but has been running into issues with the City of Redding.

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.