So long as each LLC does not own more than two residential dwelling properties, or more than four dwelling units total, the LLC may require two month’s rent as security deposit.Although elsewhere I have expressed the opinion that placing each rental unit into its own LLC is maybe not necessary for limiting liability, if an investor is subject to the new security deposit limitations, the idea of limiting the number of dwelling units in any LLC to four rental units, now has an added benefit of allowing the LLC to require higher security deposits.Below is the pertinent portion of the statute:(4) (A) Notwithstanding paragraph (1), a landlord may not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months’ rent, in addition to any rent for the first month paid on or before initial occupancy if the landlord meets both of the following requirements:(i) The landlord is a natural person or a limited liability company in which all members are natural persons.

I am unable to see the applications that have been submitted, as Nomad Lease takes an excessive amount of time to process and review them.

I would seek CPA advise on this if you want to make sure you are not taxed on the sale excess (boot).Good Investing...

Depending on the structure, we then have the Loss in Excess discussion or the Deemed Dividends discussion as well.Great post!

Have an Agent quote Excess Liability.   

SBux has great real estate, but most of their deals are well in excess of market rents due to significant Work Letters for the developer on the front end.

When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or refund the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account designated explicitly for future investments.

If a tenant signs a year lease and only stays 4 months, I incur excess vacancy with the additional turnover.

That seems excessive.

Excess Liability:  There are non-standard (excess/surplus lines) options to cover after the current $2mm umbrella is exausted.