The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

For example I have an account for each property and a sub-account just for the security deposits for those properties.

If I have no mortgage the cash flow is more secure.

It's impressive that you secured a deal like this with no renovations and turned it around the same day.

You are not responsible for his failure to secure his personal property.

Toward the end before closing, they gave bunch of excuses like security breach in their company, don't like the file and the property.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

Best approach is to have your "team" set, before going out to secure properties. 

Since the BK must be disclosed in any securities offering, you would not be able to be a partner in a syndicator/sponsor type deal9.

Sure, but again securing $500,000 isn't difficult.That said, liability coverage is lawsuit protection coverage just like it is for you.