Also in NJ you are require to put the security deposit in a rentals account compounding interest.

If you can compound your money at 15% it will double in less than 5 years.

In order to calculate the rate, you need to know the compounding.

Like you, I have a history of flipping for profit so I relate to your interest in compounding your net.

QB does not offer amortizations for receivables (even the Loan Manager I found to be useless since I couldn't adjust the compounding period), so wondering if you have any tips on removing the manual steps in changing the interest/principal each month?

It will compound over time.

In fact, it could arguably make it worst because the mistakes that many shareholders and members make gets compounded by having to deal with two separate entities (e.g. under-capitalization, failure to adhere to corporate formalities, intermingling funds, etc.). 

This is another shot across the bow of "the evil rich landlords" out there to make up for the lack of funding that the city hasn't properly managed.  

If I do let someone in who won't follow the rules that's on me and I should in now way compound that error by letting the terms of the lease slide.

Compound Interest works in the Lenders' favor.