That's not unusual for corporate rentals. 

But I do know that using a key money deposit from a tenant to help an owner purchase a building is not an unusual strategy. 

Also, when I read your steps, we are pretty on the mark for those steps but still not so sure as I can't get him to confirm the next steps.Since it's his private money it feels more like a personal loan than a bank loan which is why I'm feeling uncertain on the correct process.

Hi @Rebecca K. to clarify,JWB placed a tenant and charged one month rent as tenant placement, one of the tenants died (extremely unusual and not something they could have foreseen), the surviving tenant broke the lease and left, JWB did the turnover, JWB placed a new tenant at no charge.

Seems like if it was just entirely painted two years ago and needs a whole house painting already, it needs to come out of someone's deposit because that seems like a lot of unusual wear and tear, else I feel like the prop mgr is just trying to get more $$ out of me.

I much prefer IRR or MIRR given this uncertainly despite its minor drawbacks.

What I found most frustrating was telling them upfront, in no uncertain terms, explicitly my status.

If you are uncertain, have a professional management company work with you. 

At a big enough firm, it's not unusual to have a litigation specialist that work with other legal experts on a case.

Hello,I own several properties and I have come up against a rather unusual situation.