The security deposit belongs to the tenant not to myself (owner) or the PM.Has anyone ever heard of anything like this before?

For networking I belong to a local "Independent Agents" organization (no franchises allowed).

Thus we certify the following question as one of great public importance:DOES THE USE OF A CAMERA BY A PRIVATE CITIZEN TO MONITOR AND/OR RECORD ACTIVITIES OCCURRING WITHIN THE CURTILAGE OF A HOME SURROUNDED BY A PRIVACY FENCE NOT BELONGING TO THE CAMERA OPERATOR CONSTITUTE THE TORT OF INVASION OF PRIVACY—INTRUSION UPON SECLUSION?

I belong to some Forums that have several (stickies) and it does not detract at all.2) Let some of the members do your dirty work for you.

The seller will be long gone.

Be sure you and your friend are receiving annual forms 1098 associated with both loans and that you discuss with your respective tax advisors.You will purchase hazard insurance in your name, listing the underlying lienholder as 1st loss payee and your friend as 2nd loss payee.When structuring a wrap, it's best for the wrap term to be longer than the term for the underlying loan and of course the monthly P&I payment to be higher. 

I also caution in taking on more than double the rehab expense you've incurred in the past - especially with a property that isn't tenant friendly from a parking standpoint; it won't be long before the trekking tenant discovers that trolling for street parking isn't the cruise he signed up for and starts parking in the yard, squeezing in the driveway, or starts claiming defects with the property so he can terminate the lease. 

We have others where a tenant provides machines and either leaves them or takes them and they do not belong to the units and we bear no responsibility towards them.In your case if the current tenant wants a working washer and dryer she should provide them-you said you would not replace them.

You will get more eyes and it is where this kind of post belongs.

If their belongings were damaged or if food spoiled as a direct result of the leak, then I might consider reimbursing them for their losses.