You identify the problem (lack of deposit) during your inspection phase, then hit them with an objection that requires them to pay you a deposit at closing.

Put down deposit, lease isn't signed. 

Ask them if you deposit say $250k with them as MM or CD with them having control over it.  

Also as Don mentioned I saw many private money HML melt down when they took on PPM type investors and did not have deal flow or could never match money raised to deal flow..

Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where I think we are in the real estate cycles (financial and physical market cycles)b) Then and only then do I pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

My HOA pays for everything related to the structure and my cash flow is $200 after HOA dues so I only tend to keep 2 months of rent in reserves per unit + the tenant deposit

They will try to run 2 kitchens and that can mean clogged drains in your wet bar kitchen.Be sure there is personal recourse when you need to sue them for $40k in repairs above the deposit.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents in your area.

It’s still a worthy strategy to force cash flow that’s rare to find in SoCal, especially if you can reduce the cost of construction by doing a conversion/using an ADU grant or even buying a property with an existing ADU In general, even if the ADU valuation matches your cost including grants, they are usually not worth it in southern CA in single family zones.