Account ClosedThose are both odd debit lines as you stated you are renting. 

One of the contingencies is that I agree to pay up to 3.5% in closing costs and prepaid items.

I talked to the title company about the "2nd mortgage" and there is no 2nd mortgage document but it's referenced in the JV that Andy would finance $8000 of the purchase and in the closing doc Andy as the seller shows a $8000 debit listed as "Seller Held 2nd - per JV".

I own and manage 64 rental units and as long as their is enough money in the checking account that her debit card works she's happy.

I have it prepaid effectively so I’m never out of pocket for bills.

Use these next few months that you have pre-paid to search for quality work. 

I believe the important parts of this are 1) Paying cash2) Setting up an escrow account and funding it with the pre-paid repair costs. 

Set it up like a debit card in the sense you pay it in full every month.

Get a debit card for that bank account. 

For a conventional loan, Fannie Mae guidelines say, "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan"