You just want to keep very good records in case you ever have to demonstrate.

As @Robert Marston demonstrated, it IS possible, IF you are flexible.

Sorry for the long rant but it demonstrates why I feel for the small plumbing company and how even such seemingly black and white decisions that only involves $5,000 (It's alot but it's not going to put anyone out of business) is hurting my productivity. 

The have demonstrated that they do not fully appreciate a thoughtful, diligent landlord.

When we get new clients who have never done a syndication before, we typically advise them to start with one offs in order to build a track record with investors, and then go after a fund--unless they can demonstrate why they are the exception to the rule.

If you do want to keep the tenant, maybe by you demonstrating to this tenant that you are serious will be the wake-up call that this tenant needs to know that you are messing around and you will pursue eviction if needed.

In this way, the deposits are never co-mingled with my personal funds and I can always demonstrate $X amount held in deposits for all rentals combined.

to make money, it's best to demonstrate some sort of value such as fixing a property, finding good tenants to fill a vacant building, or finding a distressed seller...doesn't seem like you're finding those with your target audience..just one man's opinion...

Hearing success stories like this only helps to demonstrate to everyone that success in this business is possible.

A spreadsheet and a fact sheet that demonstrates your points would be amazing.