Can you imagine taking a couple days off work, looking for a new place, paying for new applications, putting down deposits, renting a moving truck, finding friends to help you move, paying to clean your old place, and so on to “Save” $300/yr? 

Tell them if they don't, you will take it out of their security deposit and they will have to replenish their deposit.

I do have 1 month of his security deposit but I am not sure the condition of the house.

If the cost of the couch removal and other items isn't that significant, maybe just pay out of pocket and don't renew them for another term (or take it out of security deposit if you have one).

I know some mentioned about developing banking relationships and I totally agree with that, so here is what you do. 1) Open a business checking account in the name of your LLC to hold the assets. 2) Deposit your cash into that account to fund the real estate purchases3) After owning for 60-90 days, talk with a local lender about a line of credit against the 2 properties at 60% LTV. 4) After about 30-45 days, have the line open to use if you need that liquidity that you used, but until then you are not paying 7% interest on nothing. 

If you have good credit they don't ask for a deposit so it very easy.

Quick context: I placed a tenant in one of my units after thorough background checks and collected security deposit + first month's prorated rent via Baselane (bad move!).

Few people have no clue what is or how it works, I was just reading today that the cannabis growers that will be trading BILLIONS of dollars in CA, cannot deposit those funds in traditional banks, therefore; many will be using Bitcoins and other digital currency. 

Feel free to dm and I can put you in touch.Also, please have a licensed and vetted contractor walk the property either before putting an offer or during an inspection period when you can back it and get your deposit back.Skepticism up front is always better than regret later.

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.