Does it simplify tax filing instead of having to account for all the separate individual transactions?

You need to be consistent with structure type, aesthetics and everything else to simplify your decisions. 

I see, thank you for simplifying.

There are definitely a few benefits to keeping them separate, and potentially legal implications depending on where you invest:Opening a separate account for security deposits will ensure that there's no chance of them being spent - this is the one that might be legally required as well.Keeping a separate "operating account", even if you're not a business, can absolutely help you keep the two sides of your finances apart and more accurately track income vs. expenses and the reserve level that you have for the properties.Theoretically, if you're using a very detailed budgeting/outflow tracking application or scheme, you could make the operating account unnecessary...but it's a very small action that will help you simplify things greatly, especially around tax time.

This is simplified but from my understanding --Your cost basis = your purchased price - depreciation = $190K - $8K = $182KYour selling amount = your selling price - your selling cost (realtor commission, etc) = $140K - 10% est($140 x 10% = $14K) = $126KYour gain / loss is based on your selling price - your cost basis =  $126K - $182K = loss of ($56K)- Your depreciation amount of $8K seems high if based on your $70K value to depreciate. 

The base unit typically rents for about $1,000 - $1,100 while the fully upgraded unit rents for about $1,200 if you can ignore everything else that affects value for an over-simplified comparison. 

Simplify this situation so you don't have to try to focus on two things at once.I hope that helps.  

This is a fairly simplified example but I think it illustrates the point.Good luck, and yes leverage your relationships to create win-win scenarios.

If I were going to try to simplify this, I think I would state that if you can't get your Earnest Money Back, you probably have Equitable Interest to the property. 

Third-- What is a good read that I can buy to help simplify the process.