I was able to secure $27k from them and $8k from our savings and the deal went through!

Their income is also all self-employed and social security benefits.

Even if they do pay all the taxes, they don't get to use the benefits they are paying for (medicare, social security, etc.).

A realtor who used to have a PM company called "JBS Realty" until this month.He used to manage 8 of my properties and is currently refusing to pay out multiple 5-figures worth of rents/property reserves/security deposits/unpaid utility bills owed. 

You might also delay refinancing until the property value or rent increases, which could secure better terms or higher returns.

Yes, you can deduct the 8 days rent from the security deposit.

Now, I'm imaging a scenario when every one of these tenants move out that I'll be paying their entire security deposit + interest even if there are damages beyond normal wear and tear. 

Certainly one account for each LLC, (separate for security deposits based on your local rules)

This would put downward pressure on mortgage rates, making financing more attractive.Investor takeaway: Secure financing now in preparation for lower rates.

So, basically you are using the $500k in crypto to secure what would normally be your 20-25% down payment in a normal financed deal.